Closeness to the technological frontier to fight the entry of the external competitors is considered to be very significant in this connection. The industries that have capability to improve their technological strength for investing in the updation of the production systems would be able to withstand the competition (Mishra, 2006). Thus the industries in this group tend to flourish and perform well under liberalized regime. While the companies that were very weak didn't have the enough strength to enhance their capacity and elevate them in towards the technological frontier. Thus most of these units have shorter business life span and ultimately get eliminated from the race. Thus the industries having very low technological frontiers would be losers under the globalised business environment (Mishra, 2006).
Indian experiment on globalization started in the year 1991 with the major sectors involved being steel, pharmaceutical, petroleum, chemical, textile, cement, retail and BPO (Business maps of India.com, n.d.). The government had expected that high rate of growth could be achieved by inviting large volumes of foreign direct investments. ...Show more