Globalization and Indian Economy

Analyzing Globalization's Impact on India

Production Across Countries

    Globalization Dimensions

    Analyze dimensions of globalization and its impact globally and on India.

    Pros and Cons

    Identify pros and cons of globalization for producers and consumers.

    Learning Outcomes

    Understand the effects of globalization on various sectors.

    Key Insights

    Gain insights into the economic changes due to globalization.

    Quick Roadmap

      Production Movement

      Why production moves across countries.

      Liberalization & MNCs

      Liberalization and the role of MNCs in India.

      Recent Trends

      Recent stats and trends in FDI, manufacturing, exports.

      Impact Analysis

      Impacts on Indian producers and consumers with data.

      Cross-Border Production

        Cost Differences

        Cost differences in labor, input prices, and energy.

        Market Access

        Proximity to large or fast-growing markets.

        Trade Policies

        Trade policy and tariffs, including preferential agreements.

        Supply-Chain Resilience

        Supply-chain resilience and diversification post-2018/2020 shifts.

        1991 Liberalization

          Reform Timeline

          Brief timeline of reforms starting in 1991.

          Immediate Effects

          Inflow of foreign firms, technology, and capital.

          Long-term Changes

          Restructuring of industry and increased services exports.

          Key Milestones

          Visual representation of major milestones in liberalization.

          Role of MNCs

            Capital and Practices

            MNCs bring capital, managerial practices, and global market access.

            Policy Tools

            FDI liberalization, PLI schemes, Make in India, tax incentives.

            Trade-offs

            Crowding in vs crowding out of domestic firms.

            Economic Impact

            Evaluate the economic impact of MNCs on local markets.

            National Statistics

              FDI Inflow

              FDI inflow for FY 2024-25 is USD 81.04 billion.

              Export Share

              Manufactured goods share of exports is around 450 billion USD.

              Manufacturing Value

              Manufacturing value added is 12–16% of GDP.

              Data Visualization

              Visual representation of key national statistics.

              Statistical Analysis Ideas

                FDI Trends

                Plot FDI inflows to India from 2010 to 2025.

                GDP Comparison

                Compare manufacturing share of GDP pre- and post-1991.

                FDI Source Countries

                Table of top 5 source countries for FDI.

                Tariff Reduction

                Analyze relationship between tariff reduction and productivity.

                Impact on Producers

                  Positive Impacts

                  Access to technology, global supply chains, and capital.

                  Export Opportunities

                  Increased export opportunities and scale economies.

                  Negative Impacts

                  Increased competition from large multinationals.

                  Small Firms Challenges

                  Pressure on small firms with limited access to finance/technology.

                  Impact on Consumers

                    Positive Effects

                    Lower prices, wider product choices, improved quality.

                    Global Brands Access

                    Access to global brands and new services.

                    Market Concentration

                    Domestic market concentration with fewer local suppliers.

                    Global Shocks

                    Vulnerability to global shocks and supply-chain disruptions.

                    Case Study: Electronics

                      Contract Manufacturing

                      Rise of contract manufacturing and local device assembly.

                      PLI Schemes

                      Role of PLI schemes and incentives in attracting phone manufacturing.

                      Job Creation

                      Jobs created vs. value capture in assembly vs component manufacturing.

                      Economic Contribution

                      Evaluate the economic contribution of the electronics sector.