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.