INTRODUCTION WHAT IS GLOBALISATION ? People around the globe are more connected to each other than ever before. Information Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent. International communication is becoming more common. This phenomenon has been titled "globalization " globalization." ." Globalization is a process of interaction and integration among the people companies and governments of different nations a process driven by international trade and trade and investment and investment and aided by information technology. technology . This process has effects on the environment environment on culture culture on political systems on economic development and development and prosperity and on human physical well!being in well!being in societies around the world. The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries. Globalisation is this process of rapid integration integration or interconnection interconnection between between countries. #$s #$s are playing a ma%or ma%or role in the globalisation globalisation process. ore ore and more goods goods and services investments and technology are moving between countries. ost regions of the world are in closer contact with each other than a few decades back.&esides the movements movements of goods services services investments and technology technology there is one more way in which the countries can be connected. This is through the movement of people between countries. People usually move from one country to another in search of better income better %obs or better education. In the past few decades however there has not been much increase in the movement of people between countries countries due to various restrictions. restrictions.
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GLOBALISATION IN INDIA Indian economy had e'perienced ma%or policy changes in early ())*s. The new economic reform popularly known as Liberalization, Privatization and Globalization +,PG model- aimed at making the Indian economy as fastest growing economy and globally competitive. The series of reforms undertaken with respect to industrial sector trade as well as financial sector aimed at making the economy more efficient. ith the onset of reforms to liberalize the Indian economy in /uly of ())( a new chapter has dawned for India and her billion plus population. This period of economic transition has had a tremendous impact on the overall economic development of almost all ma%or sectors of the economy and its effects over the last decade can hardly be overlooked. &esides it also marks the transition of the Indian economy into the global economy. Globalization in India has allowed companies to increase their base of operations e'pand their workforce with minimal investments and provide new services to a broad range of consumers. #otable e'amples of international companies that have done well in India in the recent years include Pepsi $oca!$ola c0onald1s and 2entucky 3ried $hicken whose products have been well accepted by Indians at large. Globalization in India has been advantageous for companies that have ventured in the Indian market. &y simply increasing their base of operations e'panding their workforce with minimal investments and providing services to a broad range of consumers large companies entering the Indian market have opened up many profitable opportunities. Indian companies are rapidly gaining confidence and are themselves now ma%or players in globalization through international e'pansion. 3rom steel to &ollywood from cars to IT Indian companies are setting themselves up as powerhouses of tomorrow1s global economy. ,arge companies entering the Indian market have opened up many profitable opportunities .
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Steps taken towards go!a"#at"on and "!era"sat"on Indian economy was in deep crisis in /uly ())( when foreign currency reserves had gone up to almost 4( billion5 Inflation had roared to an annual rate of (6 percent5 fiscal deficit was very high and had become unsustainable5 foreign investors and #7Is had lost confidence in Indian 8conomy. $apital was flying out of the country and we were close to defaulting on loans. To combat all these problems ma%or measures initiated as a part of the liberalization and globalization strategy in the early nineties included the following9 1.Devaluation: The first step towards globalization was taken with the announcement of the devaluation of Indian currency by (:!() percent against ma%or currencies in the international foreign e'change market. In fact this measure was taken in order to resolve the &alance of Payments +&;P- crisis. 2.Disinvestment$ In order to make the process of globalization smooth privatization and liberalization policies are moving along as well. Under the privatization scheme, most of the public sector undertakins have been! are bein sold to private sector. ".Dismantlin of #he $ndustrial Licensin %eime$
kms of the periphery of cities having a population of more than one million. &.'llo(in )orein Direct $nvestment *)D$+: 30I was allowed across a wide spectrum of industries and encouraging non!debt flows. The 0epartment has put in place a liberal and transparent foreign investment regime where most activities are opened to foreign investment on automatic route without any limit on the e'tent of foreign ownership. ?ome of the recent initiatives taken to further liberalize the )D$ reime, inter alias include opening up of sectors such as Insurance +upto =@A-5 development of integrated townships +upto (**A-5 defense industry +upto =@A-5 tea plantation +upto (**A sub%ect to divestment of =@A within five years to 30I-5 enhancement of 30I limits in private sector banking allowing 30I up to (**A under the automatic route for most manufacturing activities in ?8Bsetc. %
.%esident $ndian -cheme: The general policy and facilities for foreign direct investment as available to foreign investorsC $ompanies are fully applicable to #7Is as well. In addition Government has e'tended some concessions especially for #7Is and overseas corporate bodies having more than @*A stake by #7Is. .'bolition of the */%#P+ 'ct: It necessitated prior approval for capacity e'pansion and there were no such restrictions and rules and regulations on monopoly firms with assets over (** crores. 0.#he removal of uantitative restrictions on imports. .#he reduction of the peak customs tariff from over D** per cent prior to the D* per cent rate that applies now. 3.4ide5ranin financial sector reforms in the banking capital markets and insurance sectors including the deregulation of interest rates strong regulation and supervisory systems and the introduction of foreignCprivate sector competition.
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'OSITI() I*'ACTS O+ GLOBALISATION
1 $ncrease in GDP The rate of growth of the Gross Domestic Product of India has been on the increase from >.@ per cent during ():*!)* to seven per cent in the ())D!=**( period. $n the last four 6ears, the annual ro(th rate of the GDP (as impressive at 0. per cent *277"57&+, . per cent *277&57+, nine per cent *27757+ and 3.2 per cent *277570+. Prime /inister /anmohan -inh is confident of havin a 17 per cent ro(th in the GDP in the 8leventh )ive 9ear Plan period. .
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2. 8mplo6ment 5 ith globalization companies have forayed into the developing countries and hence generated employment for them . $t has iven an opportunit6 to invest in the emerin markets and tap up the talent (hich is available there In developing countries there is often a lack of capital which hinders the growth of domestic companies and hence employment. In such cases due to global nature of the businesses people of developing countries too can obtain gainful employment opportunities. .
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".)orein #rade5 #he forein echane reserves *as at the end of the financial 6ear+ (ere ; "3 billion *2777571+, ; 170 billion *277"57&+, ; 1& billion *27757+ and ; 17 billion *in )ebruar6 2770+. $t is epected that $ndia (ill cross the ; 277 billion mark soon.
&./arket
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.$nvestment and
. $ncrease in =illionaires5 's per the )orbes list for 2770, the number of billionaires of $ndia has risen to &7 *from " last 6ear+ more than those of /apan +=F- $hina +(6- 3rance +(F- and Italy +(F- this year. < press report was %ubilant9 #his is the richest 6ear for $ndia The combined wealth of the Indian billionaires marked an increase of @* per cent from 4 (*@ billion in =**@ to 4 (6* billion in =**6. #he &7 $ndian billionaires have assets (orth about %s. 0.7 lakh crores (hereas the cumulative investment in the 31 Public -ector Undertakins b6 the
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N)GATI() I*'ACTS O+ GLOBALISATION AGRICULTUR) There are various negative impacts of Globalisation the foremost casualty being the agriculture sector 'riculture has been and still remains the backbone of the $ndian econom6. It plays a vital role not only in providing food and nutrition to the people but also in the supply of raw material to industries and to e'port trade. $n 131, ariculture provided emplo6ment to 02 per cent of the population and contributed 3 per cent of the ross domestic product. >o(ever, b6 2771 the population dependin upon ariculture came to per cent (hereas the share of ariculture in the GDP (ent do(n drasticall6 to 2& per cent and further to 22 per cent in 277570 This has resulted in a lowering the per capita income of the farmers and increasing the rural indebtedness. .
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The agricultural growth of D.= per cent observed from ():* to ())6 decelerated to two per cent subsequently. The per cent in ():6 to F> per cent in ())) further to >> per cent in =**>. The farmers are destined to die of starvation or suicide. 7eplying to the ?hort 0uration 0iscussion on Import of heat and
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0uring the post!reform period India has been shining brilliantly with a growing number of billionaires. #obody has taken note of the sufferings of the family members of those unfortunate hundred thousand farmers. 3urther the proportion of people dependin in $ndia on ariculture is about 7 ? (hereas the same for the U@ is 2 ?, U-' 2 ?and Aapan " ? . The developed countries having a low proportion of population in agriculture have readily adopted globalization which favors more the growth of the manufacturing and service sectors.
GROWTH O+ UN)*'LO*)NT AND 'OW)RT The proportion of the unemployed to the total labor force has been increasing from =.@= per cent +())D!)F- to =.6: per cent +()))!=***- and D.*@ per cent +=**F!*>-. In absolute figures the number of unemployed in those years had been ).*= million (*.>( million and (D.(* million respectively. +8conomic ?urvey =**@!*6 Table (*.F 'bout the impact of lobalization, in particular on the development of $ndia the I,; 7eport +=**F- stated9 In India there had been winners and losers. The lives of the educated and the rich had been enriched by globalization. The information technology +IT- sector was a particular beneficiary. &ut the benefits had not yet reached the ma%ority and new risks had cropped up for the losers9 the socially deprived and the rural poor. ,
SOCIAL S)R(IC)S > per cent of such children cannot divide a three digit number by a one digit number. These are indicators of serious learning problems which must be addressed.
The less said about the achievements in health the better. The
GROWTH O+ SLU* CA'ITAL In his =**6!*: &udget ?peech 3inance inister $hidambaram put forth a proposal to promote /umbai as a (orld class financial centre and to make financial services the ne't growth engine of India. Cf its 1" million population, /umbai cit6 has & per cent in slums It is estimated that (** to D** new families come to umbai every day and most land up in a slum colony. 3rom being known as the slum capital of India and the biggest slum of
The population of 0elhi is about (F million of which nearly F> per cent population lives in slums unauthorized colonies // clusters and undeveloped rural parts. 0uring dry weather these slum dwellers use open areas around their units for defecation and the entire human waste generated from the slums along with the additional wastewater from their households is discharged untreated into the river amuna.
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The cumulative 30I inflows +until ?eptember =**@- to the #ew 0elhi region was of 7s. =6D@) crores and to umbai 7s. =F>F> crores The two spots of #ew 0elhi and umbai received F@ per cent of the total 30I inflows into India. .
#he )D$ inflo(s have in no (a6 assisted in improvin the health and environment conditions of the people. Cn the other hand, the financial capital of $ndia and the political capital of $ndia are set to become the topmost slum cities of the (orld.
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CAS) STUD456donad7s T8e s966ess:9 ;o9rne< o: an e=tre5e< pop9ar "nternat"ona !rand "n "nd"a WITH TH) H)L' O+ GLOBALISATION.
T8e !rand4 56donad7s c0onaldHs is the worldHs leading food service retailer with more than D(*** restaurants in (() countries serving more than >* million customers each day. $elebrating over (= years of leadership in food service retailing in India c0onaldHs now has a network of over (@* restaurants across the country with its first restaurant launch way back in ())@. Prior to its launch the company invested four years to develop its unique cold chain which has brought about a veritable revolution in food handling immensely benefiting the farmers at one end and enabling customers to get the highest quality food products absolutely fresh and at a great value.
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hen c0onalds started in India in())@ people in umbai and 0elhi typically ate out three to five times a month. In the (= years since then that average frequency has doubled and analysts forecast that by =*(= the Indian quick service restaurant market will be worth D**** crore. &ut from their earliest investments in India multinational company +#$- owners of restaurant chains have struggled to adapt to the needs of IndiaHs many markets. ?ome pulled out of the country after failed ventures.
Twe>e *9>* %oint!venture between c0onaldHs at a global level and regional Indian partners such as ardcastle 7estaurants Private ,imited in western India and $onnaught Plaza 7estaurants Private ,imited in northern India. The first Indian c0onaldHs outlet opened in umbai in ())@. ?ince then outlets have opened in various metropolitan and Tier II towns across the country. &y ?eptember =**: it had premises in umbai &angalore &aroda Pune Indore #asik $hennai yderabad ?urat and
'8ase I$ La9n68"ng t8e !rand The starting point for c0onaldHs India was to change Indian consumersH perceptions which associated it with being HforeignH H
design new store openings and P7 about its attempts to tailor a menu to Indian tastes. Products like c
'8ase II $ !rand ad>ert"s"ng &y =*** c0onaldHs India was ready to begin TJ advertising. The first Indian TJ commercial ?tage 3right attempted to establish an emotional connection between the +Indian- family and the brand. The ?tage 3right campaign aimed to establish c0onaldHs as a familiar comfortable place. It featured a child who suffers stage fright and is unable to recite a poem. ;n entering c0onaldHs he easily recites it in the storeHs familiar environment. These storylines were supported by other initiatives. The companyHs one!minute service guarantee attempted to reinforce its reputation for fast friendly and accurate service and it also ran in!store events for mothers and children. To kids sitting on the 7onald c0onald bench pumping sauce from the sauce machine became brand rituals. In the launch phase the communication focused solely on building brand and product relevance. The brandHs scores on relevance to families and kids were very high. 1&
,ater c0onaldHs realized there was untapped potential in the youth audience who considered c0onaldHs e'pensive and mainly for children. In =**F c0onald1s launched the L appy Price enuMwith a value message for a younger audience. 3or the first time c0onaldHs India saw a surge of younger consumers and people from socio!economic classes walk into its stores.
'8ase III$ Appea"ng to !ot8 ends o: t8e age spe6tr95 In =**: the latest campaign from the c0onalds!,eo &urnett stable uses father! son duos from the Indian film industry to reiterate the theme of "esteryearHs Prices". It features &ollywood stars from past decades together with their sons and a message that prices have not risen in line with the passage of time. The appy Price campaign has also been promoted via virals. ;utdoor has also promoted a home delivery option in a country where home delivery is common in urban areas. c0onaldHs has also been e'ploring strategic tie!ups with Indian sports properties such as the IP, cricket tournament where it was one of the eventHs food providers.
CONCLUSION Thus we can conclude by saying that the %ourney of c0onald1s in India was not at all easy. It had to work very hard to establish itself in a country where not many people had even heard about dishes like LburgersM forget eating them. owever due to e'tensive marketing and advertising it established itself very successfully and has become a success story for many other international brands to follow.
CONCLUSION
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Though at present India appears to be dominant in some fields of development this prosperity may be challenged by other competing countries which are equipping themselves with better standards of higher education.
Thus in conclusion we can say that mere growth of the G0P and others at the macro level in billions does not solve the problem of poverty and backward level of living norms of the people at the micro level. The growth should be sustainable with human development and decent employment potential. The welfare of a country does not percolate from the top but should be built upon development from the bottom.
BIBLIOGRA'H 1-
1. Liberalisation and Globalisation of Indian Economy – N.R. GUPTA 2. Indian Economy under Globalisation Process – !"A# $"ATT %.Indian Economy and &'allen(es of Globalisation – #A&"AN) "AN)ELA *.Globalisation and Its Im+act ,n Indian Economy – !.. &",U$E- and N.G. PEN)!E .Globalisation and T'e Indian Economy – RA/I PRAA!" -A)A/0 RAGINI )EEP AN) PUA R,- . 333.(oo(le.com 4.Globalisation and $usiness #ana(ement – G.!. $ATRA
5. 333.mcdonaldsindia.com
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