JAIIB IE and IFS Paper-1 Module-A Unit 6: Globalisation: Impact On India

22/12/2023

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JAIIB Paper 1 (IE and IFS) Module A Unit 6:Globalisation: Impact On India (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for JAIIB Exam 2023. Following the format of the current exam, JAIIB 2023 will have now four papers. The JAIIB Paper 1 (Indian Economy & Indian Financial System) includes an important topic called “Globalisation: Impact On India ”. Every candidate who are appearing for the JAIIB Certification Examination 2023 must understand each unit included in the syllabus. In this article, we are going to cover all the necessary details of JAIIB Paper 1 (IE and IFS) Module A Unit 6:Globalisation: Impact On India
Aspirants must go through this article to better understand the topic, Banker Customer Relationship and practice using our Online Mock Test Series to strengthen their knowledge of Banker Customer Relationship. Unit 6: Globalisation: Impact On India

Globalisation

Globalisation is defined as a rise in economic integration among nations. The concept of globalisation is an ancient one, dating back to the 18th century.
The World War I, Great Depression and World War II forced a retreat from globalisation and several trade obstacles were raised. However, in the mid-1980s, the Organisation for Economic Cooperation and Development (OECD) popularised the term yet again.
Globalisation is described by the World Trade Organization as the development towards “unrestricted cross-border flows of goods and services, capital, and labour force.” The concept was formally introduced in India with the ‘new economic policy’ in 1991–92.

Globalisation and Its Advocacy

The term “globalisation” refers to the increasing interconnectedness of the world’s economies, cultures, and inhabitants, as a result of cross-border trade in goods and services, technology, and flows of investment, people, and knowledge.
There is strong evidence from nations of all sizes and locations that when countries globalise, their citizens benefit from more exposure to a broader range of goods and services, reduced costs, more and better-paying employment, improved health, and higher overall living standards.
Investment, the proliferation of technology, robust institutions, effective macroeconomic policies, educated workforce, and the presence of a market economy are some of the reasons for globalisation’s wider acceptance.
The phrase is also used to describe the movement of people (labour) and information (technology) across international borders. Globalisation has larger cultural, political, and environmental implications.

Globalisation and Its Impact On India

The advent of globalisation caused significant changes in the Indian economy’s economic policy, production, and consumer behaviour. Globalisation has an influence on its culture as well. The entry and expansion of foreign investment in various areas propelled the Indian economy’s development, even further.
Following the 1991 reforms, the average growth rate of the Indian economy was much higher than in prior decades. Exports were regarded as a growth engine, and many new technologies were implemented, which boosted productivity, in the long term.
Effects of globalisation include increased per capita income, better employment opportunities, and far more options for customers. Globalisation opened up new options for agriculture exports.

Fair Globalisation & The Need for Policy Framework

The importance of mutual understanding and dialogue among governments, organisations within and across borders to promote social cohesion is a key proposition of fair Globalisation.
Fair globalisation creates opportunities for all, while also ensuring that the advantages of globalisation are shared equally.
Government measures must safeguard the interests of all citizens, including workers. Their rights must be effectively protected, and they must be given their entitlements.
At the local, national, regional, and global levels, fair globalisation must be supported by the interdependent and mutually reinforcing pillars of economic development, social development, and environmental

Globalisation In Reverse Gear – The Threatened Re-Emergence Of Protectionism

During economic and geopolitical crises, globalisation has always taken a hit as WTO regulations allow governments to practise trade protection measures to preserve national interests within specific limits.
Deglobalisation: The process of reducing dependency and integration amongst particular units throughout the world.
It is commonly used to characterise historical eras, in which, economic trade and investment between countries collapse.
When a government enacts laws that restrict or prohibit international trade, it is participating in protectionism, and protectionist measures frequently attempt to protect home producers and workers from foreign competition.

Protectionism takes three main forms:

Tariffs,
Import quotas,
Non-tariff barriers.
The protectionism results in decline in trade, price rise, and the necessity for provision of subsidy for protected industries.
Some jobs in these industries may be saved, but jobs in other industries are likely to be lost.
Limited role of the World Trade Organization ‘Dispute Settlement Mechanism’ also plays a critical role behind this.
There has been a rise in populism principle that, it would be better off pursuing inward rather than outward – looking policies, in both economic and foreign policies.
As Michael O’Sullivan has rightly said in his recent book, “The Levelling: What’s Next After Globalisation”, globalisation is already behind us.
These inward-looking sovereign policies, prioritising domestic production, offering packages to enable domestic companies to increase their scale of operations, increase investments domestically, and promoting a protectionist policy to support the countries from unfair trade competitions from cheaper suppliers clearly demonstrates the effect of a strategic retreat from globalisation.