Jan 31, 2011

Pros and Cons of Globalization on Indian B2B Market


When the Indian government opened the country's markets to foreign investments in the early 1990s, it had a vibrant globalization effect on Indian economy. Various segments like steel, BPO, pharmaceutical, chemicals, textiles and petroleum saw a positive growth with globalization.

As the trade restrictions between nations were removed, the economies of the various countries were benefited by a smooth financial flow and increased corporate investments. Globalization has resulted in great progress in the field of technology especially in communications and transport. The economic policy changes resulted in greater foreign investments in the country, which saw revolutionary changes in BPO sectors and It industry especially. Many foreign companies set up industries in India, which provided lot of employment opportunities and growth prospects as well. The Indian industry became technologically more advanced due to globalization and had an overwhelming presence in the world market.

Globalization has provided an impetus on the industry and trade in India. With an increase in free trade, the wealth and cooperation between various countries have increased, which has ensured better trust and mutual confidence. The free trade zones, reduction of capital controls and standardization of intellectual property laws are some of the advantages of globalization.

However, globalization has its share of negative effects as well. The increased competition in the Indian market between the foreign companies and domestic companies put many Indian companies in jeopardy as the consumers opted for high quality foreign products. This reduced the profit of Indian companies and some of the sectors that bore the brunt of globalization include pharmaceuticals, chemicals and steel industries among others. The technological advancements brought by globalization reduced the dependency of manpower and many people were rendered jobless by globalization.

Thus India has had both positive and negative effects of globalization and the government should make sure that the globalization brings in more prosperity and advancement without causing any harm to its traditional industries and its work force.

B2B market places are great platforms to know the latest trends in globalization and to meet the manufacturers and suppliers of various commodities in the global trading scenario

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