Economic globalization in the 21st century: A case study of India

Abstract

Globalization has integrated the economies of the world, especially the developing countries. With that, there has been considerable progress in economic globalization. Economic globalization, is defined as increased interconnectedness through higher trade volumes and enhanced capital flows. Factors such as better transport and communication facilities, relaxation in government policies, and advancement in technology (digitally and physically) have led to rapid economic globalization. In case of India, Multinational Corporations (MNCs) have contributed a lot towards the globalization process. The MNCs have attracted non-debt creating flows and imported technology for the benefit of the country. The liberalized government foreign trade policies have helped in increasing trade openness. In spite of the progress, numerous challenges in various forms such as lack of strong and efficient institutions, favorable redistributive and regulatory policies, domestic companies unable to compete with foreign MNCs, increase in the volume of foreign portfolio flows and MNCs adopting oligopolistic practices. Suitable policies and corrective measures can help the economy in matters of further progress in globalization.