EFFECTS OF GLOBALIZATION ON INDIAN SOCIETY
Globalization has profoundly transformed India's economy, integrating it with the global market. This shift began with the economic reforms of 1991, which included liberalization, privatization, and globalization (LPG reforms).
1.GDP Growth: Post-reform, India's GDP grew at an average of 6-7% annually, compared to about 3% before the 1990s. In 2023, India became the fifth-largest economy in nominal GDP terms.
2.Foreign Direct Investment (FDI): FDI inflows increased significantly, from $165 million in 1991 to over $84 billion in 2021–22. Key sectors like IT, telecommunications, and pharmaceuticals witnessed massive foreign investments.
3.Trade Expansion: India's share in global trade rose from 0.5% in 1991 to over 2.1% in 2021, driven by exports in IT services, textiles, and automotive products.
4.Urbanization: Economic globalization fuelled rapid urbanization, with the urban population increasing from 25% in 1991 to over 34% by 2022.
1.Service Sector Boom