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Globalization and Indian Industries - Essay Example
Author : hmcdermott
Pages 6 (1506 words)
The globalization was considered as the most feasible option for the elimination of all the trade barriers across different countries by free flow of finance, trade in goods and services and also in attracting huge investments. The heavy reliance on external finance is considered as one of the easiest options for enhancing the economic development of all the economically weaker nations of the world ( Mishra, 2006)…
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. ...