Question.
Discuss the impact of globalization on trade, employment, particularly women's employment, equality of income and wealth distribution, etc.
( UPPSC, UP PCS Mains General Studies-III/GS-3 2020)
Answer.
Globalization means integrating the economy, society, and other ways of life into the global economy and society. Liberalization, privatization, and improvement of transportation and communication technology are ways to achieve globalization.
Today’s effect of globalization has spread all over the world as there is an easy flow of goods and services from one country to another part of the world.
After the LPG ( Liberalization, privatization, and globalization) reform in 1991, the Indian economy is now more globalized. Globalization has a significant impact on trade, employment, women empowerment, and income and wealth distribution in India.
The following is the impact of globalization-
Impact of globalization on trade; Liberalization and globalization of the economy remove the trade barriers between countries, which have facilitated the increase in imports and exports. Indian companies have gained access to global export. The increase in trade made a positive impact on the economy that leads to an increase in GDP growth, fostering innovation, and manufacturing capacity. For example, India's GDP in 1991 was about $266 billion while it is about $ 3.3 trillion in 2023.
Impact of globalization on Employment; Globalization has created new job opportunities and created new jobs in sectors such as information technology, business process outsourcing, pharmaceutical, tourism, and manufacturing sectors. These industries experienced huge growth which created huge jobs, which benefitted all youths, including women. Globalization also leads to the creation of the gig economy which leads to an increase in temporary employment and contractual workers.
Impact of globalization on Women's empowerment; Globalization has played an important role in empowering women in India. There are huge employment opportunities for women in software industries, business process outsourcing, pharmaceutical, and other services sectors. It provides financial independence and contributes to household incomes. The flow of ideas and values from abroad also increased the awareness of women’s rights and gender equality.
Impact of globalization on income inequality; Globalization has contributed to the increase in income inequality in India. The benefits of globalization have not equally benefited all societies. Certain industries provide high wages and other industries provide low wages, which leads to income disparities.
Impact of globalization on wealth distribution; Globalisation has created wealth through entrepreneurship, foreign investment, and technological transfer, which resulted in the creation of wealthy people. It leads to the concentration of wealth in the hands of a few, which increase the unequal wealth distribution. The benefits of globalization have not reached marginalized communities leading to disparities in wealth distribution.
In conclusion, on one hand, globalization has brought economic growth, increased trade, and empowered women in India, on the other hand, it benefitted a few individuals which lead to income and wealth disparities. It is essential for the government to address the negative impacts of globalization, and government should focus on inclusive growth, investment in education and skill development, and equitable distribution of benefits across societies.
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