Impact of globalization on Indian society Importance of Globalization In India Globalization in India has great importance in politics, economics, culture, religion and in every branch of knowledge and science. In economic or material field the term globalization is used to denote two different meanings. The importance of Globalization in India are as follows : o First, it means spread of trade and commerce of Indian Businesses. o Secondly, it speaks of immigration and migration of people of different areas. o Thirdly, it opens avenues of free movement of currency and other medium of exchange among the different countries. o Fourthly, it denotes the scope of investing the capital of one country into another and thereby producing the agricultural goods, industrial goods and services in that other country and selling it ,there or in any third country continuously. o Fifthly, it speaks of the exchange of finance capital from one country to another. o Sixth, it increases the impact of the trade, investment and production of the multinational or trans-national Corporations. o Seventh, it speaks of the opening of the avenues of technological exchange among different countries. o Lastly, it stresses on the expansion of international information media and the impact of using electronic technology on the information media of different countries. The importance of Globalization in India traces back its root in Ancient India. In fact many of the branches of globalization are much older than the rise of capitalism itself. In ancient India, immigration and migration of the races and communities were frequent affairs. As human civilization advanced and men learnt trading, trade and commerce began between the countries Exchange of finance capital was also an age old affair. With the rise of capitalism many aspects of globalization came into surface and became an accepted practice As a result of the debt, during the 1980's Globalization process and policy became very much pressing in the third world countries. Meanwhile the discovery of microchip created revolution in computer technology. Information technology underwent a revolutionary change. The fall of the previous Soviet Union and the collapse of communism paved the ground for further advancement of the capitalists’ countries to pursue the policy of globalization. The countries which had taken debt were found unable to pay the debt and that helped the spread of globalization easier a measure. For India the impact of the policy of globalization is both bad and good. The nature of Indian’s foreign trade with other countries of the world underwent great changes after India’s independence. During the first two decades her industrialization progressed in rapid pace and there was green revolution in our agriculture. Some internal significant reforms were made like the nationalization of banks, encouragement to agriculture and small scale industries etc. She had some deficit in her foreign trade, but was free from the heavy burden of foreign debt. From 1985 her economic policy changed and more importance was given to the globalization policy in India. That was the time of Rajib Gandhi. The policy followed by the Janata Govern¬ment after Rajib’s fall from power caused great deficit in her foreign exchange. To guard it, the next government of Narasimha Rao sought huge loan from I.M.F. and devalued money, withdrew almost all restriction from foreign investment in this country and took many other measures. The globalization policy in India was followed very carelessly and the result was the Bank Scam, depression in the industrial field etc. Her export also diminished. Yet the foreign investment has increased but that has not done any good to the country as a whole. The Patent Act of the World Trade Organization (W.T.0.) has robbed off much of her wealth. In fact to gain the good out of the globalization India must have to do much social reforms and instead of depending on the foreigners for investment and other economic activities, she should find out her own way to make proper use of the stores of knowledge and culture of the world. In this respect we can take the example of China, Japan and South Korea. Globalization And Foreign Trade In general sense the term Foreign Trade means establishment of the export import relationship with other countries of the world. But the scope of the globalization of the foreign trade or activities towards the outer world is wider. It should be remembered that India’s share in the total amount of trade in the world is only around 1%. Hence to increase this negligible share of India in the world’s total volume of trade as well as to extend the scope of her foreign trade, it is necessary to make her foreign trade more competitive. So to attain this objective of Globalization and Foreign Trade, the Government of India has loosened the rigidity of her import policy on one hand and on the other, to increase the volume of her export has devalued the standard of her money in exchange of American dollar and arranged the full convertibility of its Rupee. Since India is a member of the World Trade Organization India has withdrawn the quantitative restrictions that so long existed on the import of goods. India has already decreased the import tariff on an average of 20% and in most cases has withdrawn the import duty. Moreover, the subsidy on export has also been withdrawn. In order to effect globalization of the foreign trade the other measures already taken by her includes encouraging direct foreign investment within the land, to increase the scope of participating in the equity capital by the foreign investors up to 51% and to invite the multinational corporations to expand their trade in India. Scopes have been provided for foreign equity up to 74% at present in the field of private banks, telecommunication and insurance services. In the present state of market economy, as the interaction of demand and supply in the commodity market and production market plays signifi¬cant role, likewise in the foreign market as well, the interaction of demand and supply changes the volume of import and export of a country. One of the main policies of the world made organization is to relax the import policy and to abolish the restrictions from the trade and commerce while providing India loans for her structural adjustment the World Bank also imposed the condition for globalization of her foreign trade. As a consequence of this condition India had to take all necessary measures to pave the ground for the globalization of her foreign trade. As an impact of this globalization process the information and technology of India has made significant progress. Especially India has made remarkable progress in her soft ware industry. India is now even exporting soft ware to other countries of the world. Now India can keep constant link with the rest of the world through internet system and the credit for this should be given to the demand of globalization. Due to the influence of this globalization again the telecommunication industry of India has also improved. It is true that globalization of this foreign trade has not been proved beneficial for India in every respect. However, it should be remembered that in the present state of affairs of the open world system India is left with no other alternative policy but to follow the policy of globalization. To achieve this object of globalization India is acting a significant role as an important member of the South Asian Free Trade Area—S.A.F.T.A. and also trying to play equally significant role in extending her trade relation with the countries of the Association of South East Asian Nations (A.S.E.A.N). She has also extended her trade with China, Japan and South Korea.