Globalization has intensified interdependence and competition between economies in the world market. This is reflected in Interdependence in regard to trading in goods and services and in movement of capital. As a result domestic economic developments are not determined entirely by domestic policies and market conditions. Rather, they are influenced by both domestic and international policies and economic conditions. Direction and depth of all economic activities in India is now governed largely by global Economy.

Positive Impact includes

• Policies of Privatization and liberalization of economy, along with the process of globalization, had a dramatic effect on Indian Economy which responded swiftly and positively to these measures. . The growth rate of the Indian economy accelerated from 5.29 per cent per annum during the 1980s to 6.06 per cent per annum during 1991-92 to 2005-06. The Indian economy has been recording a growth rate of about 8-9 per cent per annum since 2003-04.
• Globalization has led to an increase in innovations in the economy and has pushed the culture of start-ups in the country.
• Access to global capital resources via the stock market and international debt depending on the economic potential of nations and their markets.
• Sharp reduction in industries reserved exclusively for public sector.
• Decision to go for disinvestment in public sector enterprises thus promoting efficiency and merit.
• Increase in tourism and development of tourist destinations in India- leading to increase in foreign reserves
• Boost to urbanization and industrialization, which has also led to unplanned growth of urban centres leading to formation of more slums.
• Vast expansion of sectors like IT, telecommunication and aviation. A notable revolution has occurred in the telecom sector. In the pre reforms era, this was entirely in the hands of the central government and due to lack of competition, the call charges were quite high. Further, due to lack of funds with the government, the government could never meet the demand for telephones. In fact, a person seeking a telephone connection had to wait for years before he could get a telephone connection.
• The biggest contribution of globalisation is in the field of quality and development of products with various features to suit the Indians. Now wide choices are available to select goods, which has led to better quality of products due to greater competition.
• Access to global capital resources via the stock market and international debt depending on the economic potential of nations and their markets.
• Globalization has improved access to health technology (medicines, vaccines and medical equipments and knowhow).This has led to improvement of health care system. But globalization has also led to a greater threat of spread of communicable diseases like Ebola.
• Globalization has also affected the education sector in India. Globalization has increased the demand for education due to the economic payoffs of higher education to global, science based, knowledge. University training has become more of a necessity to get good job in a globalized world. Moreover, socio-political, demographic and democratic ideals increase pressure on universities to provide access to groups that traditionally have not
attended universities. Opening Indian higher education to foreign competition will benefit education sector further.
• In theory, globalisation, by promoting economic growth in developing countries, tends to reduce poverty Some scholars have argued that ‘ trade is good for growth, growth is good for the poor and so trade is good for the poor’ (Dollar and Kray, 2001). The empirical experience of developing countries generally supports this proposition as the incidence of poverty declined significantly in many fast growing countries like China, India and Vietnam. However, some critics have argued that the reduction of poverty in China was only because of its exceptional growth—in fact, absolute poverty increased in Sub-Saharan Africa and relative poverty has increased in a majority of countries.
• Globalization has through greater exposure liberalized our attitudes, reduced our biases and predispositions about people, situations and communities worldwide.

Negatives

• Indian Economy has become more vulnerable to global shocks like East Asian crisis 1997, European crisis, Global Financial crisis (2007-08) etc.
• Globalization has adversely affected many established companies (like organisations manufacturing Ambassador Cars or Fiat cars etc) which failed to face competition from established global players.
• Steep and fast reductions in custom duties have snatched large part of Indian market from Indian Industry and passed it on to imports from established global players.
• For its survival in the face of global competition, Indian industry has transformed itself from labour intensive processes to Capital intensive processes by adopting global technologies and automatic machinery. This has resulted in high rate of unemployment in India. Unemployment is the biggest challenge for Indian Government today.
• There has been a tremendous increase in consumerism for goods and services.

We may call globalization, at best, a double edged weapon. It has helped Indian consumers to enjoy all high Quality global brands. It did help Government of India to tide over its serious foreign exchange problem, though temporarily, by enabling it to get loan from World Bank. But critics cite serious erosion of control of Indian Government over its economy and the loss to local Industry as setbacks