III ECONOMIC REFORMS SINCE | Class 11 Economics Notes

3.5 GLOBALISATION

Globalisation refers to the integration of a country’s economy with the world economy, creating interdependence across economic, social, and geographical boundaries. It involves the creation of networks that link countries and influence events globally, effectively making the world a borderless economic space. One important outcome of globalisation is outsourcing, where companies contract out services previously performed internally to external providers, often in other countries. This has grown due to advances in information technology and telecommunications. India has become a major destination for outsourcing services such as business process outsourcing (BPO), call centres, legal advice, accounting, and IT services, due to its skilled workforce and lower wages. Multinational companies outsource to India to reduce costs while maintaining quality. The World Trade Organization (WTO), established in 1995 as the successor to GATT, aims to create a rule-based global trading system by removing arbitrary trade restrictions and promoting fair market access. India, as a WTO member, has committed to liberalizing trade by removing quantitative restrictions and reducing tariffs. While globalisation offers opportunities for access to global markets and technology, critics argue it can increase inequalities and threaten local industries and welfare. The section also highlights Indian companies expanding globally, such as ONGC Videsh and Tata Steel, illustrating India’s growing global footprint.

📊 Diagram: Figure 3.1 depicts outsourcing as a new employment opportunity in big cities, showing call centre employees working with headsets in an office environment.

🧪 Activity: Activities include debating the pros and cons of globalisation, listing companies with BPO services in India, sharing experiences of online learning during the COVID-19 pandemic, and discussing sustainability of call centre employment.

🔗 Connection: Leads to 'Indian Economy During Reforms: An Assessment' which evaluates the impact of reforms on economic growth and sectors.