Indias Participation in Global Economy Essay Example | Topics and Well Written Essays - 3000 words

Indias Participation in Global Economy - Essay Example The Indian society is now subject to western imperialism and quite a distinct reflection of the western culture, styles, and language and business activity. The economic environment of India, after the reforms has predominantly changed from socialist policies to more liberal policies, facilitating an expansion of international trade. Some cultural values are very strongly established amongst the Indian workforce and may deter further expansion of international trade but Indian culture is one of business orientation because of its historical significance and industrial background and thus strongly supports trade activity. Yet there remain some economic challenges that may deter further growth of the economy. These include an inadequate infrastructure to support a growth rate of 8%. With so much international pressures to quality conformance and timely production, India must invest in up gradation of its ports, rail networks, roads, and power and water supplies. Hence, in order for Ind ia to capitalise on its economic benefits, it must overcome these economic challenges and increase its international market presence by developing indigenous brands and thus expanding international trade. 1.Problem Identification and Analysis With the highest population in the world of about 1.1 billion, second largest to China, India has made its way amongst the world’s leading economies in the year 2007. ... ccording to the World Bank Report, its economic growth rate was 8%, close to 10.4% of China, despite the high dependence of its economy on the agricultural sector (World Bank 2004). Recently the economy has moved towards massive production orientation in the manufacturing sector and there has been an observable proliferation of information technology and telecommunications. It is the augmentation within this sector, the software companies and call centres that have fuelled the economic growth in India. India has developed the right infrastructure to facilitate this rapid economic growth through development of an educated, English speaking workforce and thus has become a hub for outsourcing for large multinationals and overseas services to US companies (Banik 2007). Many companies like Ford Motors, General Motors and software companies have subcontracted their business services including customer service support, business support and troubleshooting computers, to this sector of Asia. Moreover, the country also has some skilled personnel to conduct customer surveys and research that provides the foundation for its international trade. Many companies are considering outsourcing their most expensive marketing process that is research, to the low cost researchers in India (Suresh 1999). The main reason that has fuelled this structural change is the emergence of a class characterised with young business professionals. It is also the culture of the country that promotes diligence, struggle and goal orientation (Kumar and Agarwal, Liberalization, Outward Orientation and In-house R&D activities of multinationals and local firms 2000). Therefore, the impact of globalization has been tremendous on Indian economy. With more and more companies looking to outsource in attempt to