ECONOMIC IMPACT

Greater Number of Jobs

The advent of foreign companies and growth in economy has led to job creation. However, these jobs are concentrated more in the services sector and this has led to rapid growth of service sector creating problems for individuals with low level of education. The last decade
came to be known for its jobless growth as job creation was not proportionate to the level of economic growth.

More choice to consumers

Globalization has led to a boom in consumer products market. We have a range of choice in selecting goods unlike the times where there were just a couple of manufacturers.

Higher Disposable Incomes

People in cities working in high paying jobs have greater income to spend on lifestyle goods. There has been an increase in the demand of products like meat, egg, pulses, organic food as a result.

Shrinking Agricultural Sector

Agriculture now contributes only about 15% to GDP. The international norms imposed by WTO and other multilateral organizations have reduced government support to agriculture.

Greater integration of global commodities markets leads to constant fluctuation in prices.

This has increased the vulnerability of Indian farmers. Farmers are also increasingly dependent on seeds and fertilizers sold by the MNCs.

Increasing Health-Care costs

Greater interconnections of the world has also led to the increasing susceptibility to diseases.

Whether it is the bird-flu virus or Ebola, the diseases have taken a global turn, spreading far and wide. This results in greater investment in healthcare system to fight such diseases.

Child Labour

Despite prohibition of child labor by the Indian constitution, over 60 to a 115 million children in India work. While most rural child workers are agricultural laborers, urban children work in manufacturing, processing, servicing and repairs. Globalization most directly exploits an estimated 300,000 Indian children who work in India’s hand knotted carpet industry, which exports over $300 million worth of goods a year.