Why Should India Globalise?

Why Should India Globalise?

Although  India   has   several   handicaps,   there   are   also   a   number   of   favouable   factors   for globalisation of Indian business.

(a)        Human Resources:‐  Though labour productivity in India is low, given the right environment Indian  labour can perform excellently.   While several countries are facing labour shortage, India has ample and cheap labour.

(b)        Wide Base: ‐ India has a variety of other natural resources, which provide a wide base for development  of  industrial units in India.  For example,  minerals, forest resource, animal manpower resource.

(c)         Growing Entrepreneurship: ‐ In the recent years, there has been a considerable growth  in the     number           of                 new              and     dynamic     entrepreneurs   who     could     make  significant contribution to the globalisation of Indian business.

(d)        Growing Domestic Market: ‐ The growing domestic market enables the Indian companies to consolidate their position and to gain more strength to make entry into foreign markets or to expand their foreign markets or to expand their foreign business.

(e)        Niche  Markets:‐  A  market  niche  is  small  segment  of  the  market  which  is ignored  or overlooked   by   the   major   players.                                          Such   niches   are   particularly attractive for small companies.

(f)         Expanding  Markets:  ‐  The  growing  population and  disposable income  and  the resultant expanding    international     market     provide     enormous    business opportunities to Indian manufactures.

(g)        Transnationalisation  of  the  World  Economy:  ‐  Transnationalisation  of  the world   economy  due  to  the  growing  interdependence  and  globalisation  of markets is an external factor encouraging globalisation of Indian business.

(h)        NRIs: ‐ The large number of non‐resident Indians, who are resourceful in terms of  l   capital,  skill,  experience,  exposure  and  ideas,  are  assets  which  can contribute to the globalisation of Indian business.

(i)         Competition: ‐  The  growing  competition  both  from  within  the  country  and aboard  provokes many Indian companies to look to foreign markets seriously to improve their competitive position and to increase the business.

(j)         Economics Liberalisation: ‐ The economic liberatlisation such as delicensing of industries,  removal  of  trade  restrictions,  privatization,  import  liberalization, etc., would encourage globalisation of Indian business.