Globalisation and its Impact on India
Are Global Interconnections New To World And To India
The term globalisation is often used to describe the intense and rapid interconnectedness of the contemporary world. However, it is important to recognise that global interconnections are not a completely new phenomenon. Human societies have been interacting with each other through trade, migration, and the exchange of ideas for millennia.
The Early Years
India, for example, has a long history of global connections.
- The Silk Route: For centuries, the famous Silk Route connected India with other great civilizations like China, Persia, and Rome. This was not just a trade route for silk and spices but also a conduit for the exchange of knowledge, philosophies, and religions. The spread of Buddhism from India to other parts of Asia is a prime example of these early global cultural flows.
- Trade and Migration: Indian traders, merchants, and religious teachers travelled across the seas to Southeast Asia and the Middle East, while people from other parts of the world also came to India.
While these early connections were significant, they were different from contemporary globalisation in terms of their scale, speed, and intensity. They involved a much smaller proportion of the population and the flows of goods and ideas were much slower.
Colonialism And The Global Connection
A more structured and intensive phase of global connection for India began with the advent of colonialism. The British Empire created a global system that forcefully integrated the Indian economy and society into the world capitalist system.
- Economic Integration: India was transformed into a supplier of raw materials for British industries and a market for their finished goods. This created a new kind of global economic relationship, but one based on exploitation and inequality.
- Movement of People: Colonialism also led to the large-scale movement of people. A significant number of Indians were sent as indentured labourers to work on plantations in other British colonies in the Caribbean, Africa, and Southeast Asia, creating the Indian diaspora that exists today.
- Political and Cultural Flows: The introduction of Western education, legal systems, and political ideas by the British had a profound and lasting impact on Indian society and culture.
The colonial global connection was thus a system of domination that laid the groundwork for the unequal power relations that still characterize the contemporary global order.
Independent India And The World
For the first few decades after independence in 1947, India followed a policy of relative economic self-reliance. While it was politically active on the world stage (for example, as a leader of the Non-Aligned Movement), the Indian economy was largely state-controlled and protected from foreign competition. The focus was on building up indigenous industrial capacity. This phase came to an end in the early 1990s, when a severe economic crisis forced India to adopt a policy of economic liberalisation, opening its doors to the forces of contemporary globalisation.
Understanding Globalisation
Globalisation is a multifaceted process that involves the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice versa. It is characterized by the increasing flow of goods, services, capital, people, and information across national borders, leading to a growing sense of a single, interconnected world.
The Different Dimensions Of Globalisation
Globalisation is not just an economic phenomenon; it has economic, technological, political, and cultural dimensions.
The Economic
The economic dimension is at the heart of globalisation. It includes:
- Liberalisation: The policy of reducing state control over the economy and opening it up to private and foreign investment.
- Transnational Corporations (TNCs): The rise of huge corporations that operate in many different countries. TNCs play a major role in organizing global production and trade.
- Electronic Economy: A global financial market that operates 24/7, where vast sums of money can be transferred across the world in an instant.
Global Communications
The technological revolution in communications has been a key driver of globalisation. The development of satellites, fibre-optic cables, and the internet has made it possible to communicate information instantly across the globe, effectively 'shrinking' time and space.
Globalisation And Labour
Globalisation has created a more flexible and international division of labour. Companies can now shift their production and service operations to parts of the world where labour is cheap. This has led to the growth of phenomena like outsourcing.
Example: Call Centres in India
The boom in the call centre and Business Process Outsourcing (BPO) industry in India is a direct result of globalisation. Western companies outsource their customer service and back-office operations to India to take advantage of the large pool of educated, English-speaking, and relatively low-wage workers. This has created a new employment sector but has also raised questions about working conditions and cultural identity.
Globalisation And Employment
The impact of globalisation on employment is complex and debated.
- Positive Impact: Proponents argue that it creates new jobs, particularly in the service sector (like IT and BPO) and in export-oriented industries.
- Negative Impact: Critics argue that it also leads to job losses in sectors that cannot compete with cheap imports. It has also led to a decline in secure, formal sector employment and a rise in insecure, informal, and contract-based work.
Globalisation And Political Changes
Globalisation has also had a significant impact on politics.
- Decline of the Nation-State?: Some argue that the power of the nation-state is declining as global flows of capital and information become more difficult to control.
- Rise of International Governmental Organizations (IGOs): Organizations like the World Bank, the International Monetary Fund (IMF), and the World Trade Organization (WTO) have become powerful actors that can influence the economic policies of national governments.
- Rise of International Non-Governmental Organizations (INGOs): Global civil society organizations (like Greenpeace or Amnesty International) have also emerged to challenge the policies of states and corporations on a global scale.
Globalisation And Culture
The cultural impact of globalisation is one of its most visible and contentious aspects.
Homogenisation Versus Glocalisation Of Culture
As discussed previously, there is a debate about whether globalisation leads to cultural homogenisation (a single global culture) or glocalisation (the mixing of global and local cultures). While Western cultural products are widespread, they are often adapted and indigenized at the local level, and local cultures also continue to thrive.
Gender And Culture
Globalisation's impact on gender is contradictory. It has created new employment opportunities for women (e.g., in the garment industry and call centres), which can increase their economic independence. However, it can also lead to new forms of exploitation, with women often concentrated in low-wage, insecure jobs. The global media also plays a complex role in both reinforcing and challenging patriarchal gender stereotypes.
Culture Of Consumption
Globalisation has intensified the spread of a global culture of consumption. The proliferation of global brands, shopping malls, and advertising promotes a lifestyle where personal identity and happiness are increasingly defined by the consumption of goods and services.
Corporate Culture
Globalisation has also led to the spread of a 'corporate culture'—a way of organizing work that emphasizes efficiency, flexibility, and individual performance. This can lead to increased productivity but has also been criticized for increasing work pressure, job insecurity, and long working hours.
Threat To Many Indigenous Craft And Literary Traditions And Knowledge Systems
A major concern is that the forces of the global market can threaten the survival of indigenous cultural traditions. Small-scale artisans and craftspeople often find it difficult to compete with mass-produced global goods. Traditional knowledge systems, such as indigenous systems of medicine or agriculture, can be marginalized or illegally appropriated by large corporations (a process known as 'biopiracy'). The protection of this cultural heritage in the face of globalisation is a major challenge for countries like India.