Published on 12 Feb 2025
Globalization is the progressive development of interdependence, connectivity, and integration among economies and societies, to the extent that occurrences in one region of the world have repercussions on individuals elsewhere across the globe.
Factors Affecting Globalization
✔ Economic factors
● Trade liberalization: Reduction of tariffs and barriers to trade facilitates easier movement of goods and services across borders.
o Example: European Union created a single market with free movement of goods, services, people and capital among its member states.
● Foreign direct investment (FDI): Investments by companies in other countries create jobs, transfer technology and promote integration.
o Example: Foreign companies like Canadian Solar and LONGi Green Technology contributed to a significant portion of newly installed solar capacity in India.
● Economic interdependence: Countries becoming increasingly reliant on each other for resources, production and markets.
o Example: Oil producing countries like Saudi Arabia and Iran influences global energy prices, creating economic interdependence.
● Globalization of production: Companies fragmenting production processes across different countries based on cost advantages.
o Example: Apple, a US company, designs iPhones but relies on manufacturers like Foxconn in China for assembly.
✔ Technological factors
● Information and communication technologies (ICT): Advancements like the internet, mobile technology, and social media enable faster communication, collaboration, and data exchange globally.
o Example: Video conferencing tools like Zoom, Microsoft teams enable geographically distant teams to collaborate effectively.
● Transportation and logistics: Improvements in transportation infrastructure and logistics efficiency reduce costs and time associated with moving goods and people across borders.
o Example: Development of Suez Canal transportation facilitated maritime trade between Asia and Europe. Its blockage in 2021 highlighted the critical role of Suez Canal on the same.
● Automation and robotics: Increased automation and use of robots in various industries can impact production processes and trade patterns.
o Example: Countries like China and Vietnam leveraged automation to establish themselves as manufacturing hubs for electronics, auto mobiles and textiles.
✔ Political factors
● International agreements and trade pacts: Multilateral and regional trade agreements aim to facilitate trade and investment through established rules.
o Example: World Trade Organisation (WTO) sets international trade rules and foster dialogue to reduce trade barriers like tariffs and quotas.
● Government policies: Policies on immigration, taxation, and intellectual property rights can influence the pace and direction of globalization.
o Example: H-1B visa program in US allowed skilled foreign in speciality occupations to work in US.
● Political stability and security: Stable political environments and global security are crucial for smooth trade and investment flows.
o Example: Ongoing Russia-Ukraine war caused significant disruption on global trade, particularly in wheat export from Ukraine.
✔ Social and Cultural factors
● Migration and mobility: Movement of people for work, education, or other reasons fosters cultural exchange and integration.
o Example: Indian migration to US, UK, Canada led to sharing of Indian cuisine, festivals and traditions.
● Global consumerism: Growing similarities in consumer preferences and demands across different countries create markets for global brands.
o Example: Apple’s iPhones and Samsung’s Galaxy devices coveted by consumers worldwide.
● Environmental awareness: Global concerns about climate change and resource depletion raise challenges and opportunities for sustainable globalization.
o Example: Global e-waste will increase by 38% till 2030. (Global e-waste monitor report, 2020)
Impacts of Globalisation on Economy
✔ Positive impacts
● GDP rise: Globalization boost GDP by increasing trade opportunities, attracting foreign investment and fostering technological advancements.
o Example: During 1990-91, India’s GDP growth rate was only 1.1%. After LPG reform, currently in 2022-23 the growth rate is at 7%.
● Job creation: New industries and sectors emerged due to globalization, creating job opportunities in areas like IT, services, and manufacturing.
o Example: As per NASSCOM, Indian IT industry directly employs around 51 lakh persons in FY 2021-22.
● Foreign Direct Investment (FDI): Globalization attracted foreign investment into India, providing capital for infrastructure development, job creation, and technological advancements.
o Example: FDI share was increased considerably with more opening to globalization. During FY 2022-23, FDI inflow of USD 71 billion has been reported. (Ministry of Commerce and Industry)
● Free Trade Agreements: Globalization led to growth of free trade agreements which allowed increased exports and imports, boosting economic activity and consumer choice.
o Example: Association of South East Asian nations (ASEAN) was created in 1967 for trade and economic growth between 10 South East Asian nations.
● Increased export: Globalization opened new markets for Indian goods and services, leading to increased exports and economic growth.
o Example: Indian pharmaceutical industry ranks 3rd globally for the production volume, holding a 20% share in global generic medicine supply.
● New companies: After 1991 reforms, which opened India to globalization, many new companies were formed in India.
✔ Negative impacts
● Unemployment: Globalization can lead to job losses in certain industries as companies move operations to counties with lower labour costs.
o Example: During 1980s and 1990s, Indian textile industry faced job losses as some companies shifted production to Bangladesh and Vietnam with lower labour costs
● Wealth inequality: The benefits of globalisation often accrue to those with specialized skills or access to capital, while others may face stagnant wages or job insecurity.
o Example: Mumbai, the financial capital of India also has slums like Dharavi and other informal settlements.
● Easy spreading of economic shocks: Globalization can facilitate the rapid spread of financial crises across borders, as interconnected financial markets and institutions transmit shocks more easily.
o Example: 2008 financial crisis affected many countries around the world.
● Shift to capital intensive process: With technology transfer and improvement, manufacturing process shifted from labour intensive process to capital intensive process like use of machineries.
Impacts of Globalisation on Society
✔ Positive impacts:
● Women empowerment: Increased access to education and employment opportunities has empowered many women.
o Example: International organizations like UNESCO and Room to Read have partnered with local communities to improve girl’s access to education and improved life chances for women.
● Social mobility: Education and skill-based employment have become pathways for upward mobility, leading to changes in social structures and aspirations.
o Example: The rise of the tech industry in India, in cities like Bangalore and Hyderabad, has created numerous opportunities for individuals from diverse backgrounds to climb the social ladder.
● Social activism and awareness: Increased connectivity and access to information enabled grassroots movements on issues like human rights, environmental conservation, and gender equality.
o Example: The #MeToo movement, fuelled by social media and online sharing, empowered women around the world to speak out against sexual harassment and assault
● Culture exchange: Globalization has led to increased cultural exchange between India and the rest of the world mainly in society, affecting clothing, music, cuisine, and entertainment.
o Example: Films like "Dangal" and "RRR" have achieved international box office success, showcasing Indian storytelling and cultural elements to a global audience.
✔ Negative impacts
● Migration: Globalization has led to increased internal migration in search of better employment and livelihood opportunities which led to overcrowding, inadequate infrastructure.
o Example: As per Census 2011, 450 million people or 37% of the population are internal migrants.
● Social Inequality: Due to lack of skills, marginalized communities such as lower castes, tribal groups, and rural populations was left behind during globalization.
● Spread of misinformation and harmful content: Free flow of information led to spread of false news, hate speech, and harmful online content, impacting social cohesion and well-being.
o Example: Throughout COVID 19, misinformation about the virus, vaccines, and treatments spread rapidly online, impacting public health efforts and leading to vaccine hesitancy
● Cultural homogenization: The dominance of certain cultures, often from Western nations, can threaten the diversity and uniqueness of local cultures and traditions.
o Example: The proliferation of Western-style fast food chains like McDonald's and KFC can lead to homogenization of local cuisines
Political Impacts of Globalisation
✔ Positive impacts
● Increased impact of India in global arena: India's economic growth and integration into global trade have enhanced its international standing and political influence.
o Example: India has taken the lead in various international initiatives, such as the International Solar Alliance and the Coalition for Disaster Resilient Infrastructure.
● Increased intergovernmental cooperation: Global challenges like climate change, terrorism, and pandemics necessitate international collaboration, fostering dialogue and cooperation.
o Example: Green Climate Fund channels financial resources from developed countries to developing countries to support climate action projects like renewable energy
● Increased transparency and accountability: Public access to information facilitated by globalization empowers citizens to hold their government accountable, promoting good governance.
o Example: CPGRAMS platform is available for citizens to register their grievances with public authorities regarding any service delivery-related issue.
● Rise of non–state actors: Globalization has facilitated the rise of non-state actors like multinational corporations, non-governmental organizations (NGOs), and transnational advocacy networks.
o Example: NGOs like Amnesty International and Human Rights Watch push for human rights accountability, pressuring governments and raising public awareness.
✔ Negative impacts
● Exploitation of developed countries: Unequal power dynamics can lead to unfair trade practices, exploitation of resources, and interference in internal politics of developing nations.
o Example: Strict intellectual property laws in developed countries can limit access to affordable medicines and technologies in developing nations, hindering their healthcare.
● Challenges to sovereignty: Globalization has challenged the traditional notion of state sovereignty, as governments face pressure to comply with international norms, standards, and regulations.
o Example: Fear of US sanctions under CAATSA.
● Rise of populism and protectionism: Concerns on job losses, cultural erosion, and resource distribution led to calls for greater protectionist measures and nationalist policies.
o Example: Renegotiation of NAFTA in the US and the rise of economic nationalism in countries like Brazil.
● Corporate influence on politics: Powerful multinational corporations may exert undue influence on government policies, raising concerns about democratic processes.
● Increased interdependence: Globalization has increased the interdependence of nations, political decisions and events in one country can have far-reaching effects on others.
o Example: 2008 financial crisis globally led to widespread bank failures, liquidity crises, and stock market crashes.
Impacts of Globalisation on Agriculture
✔ Positive impacts
● Increased market access: Globalization has opened up new markets for Indian agricultural products, leading to increased exports and potential for higher income for farmers.
o Example: India is the world's largest exporter of Basmati rice with a rising demand in the Middle East, Europe, and the US.
● Increased National income: Open markets, new technologies, and improved seeds have combined to drive robust growth in Indian agricultural production.
● Investment and infrastructure: Foreign investments in agricultural infrastructure, storage facilities, and processing plants can improve supply chains and reduce post-harvest losses.
o Example: International Finance Corporation (IFC), a member of the World Bank Group, has invested in projects like the construction of cold chain infrastructure in India.
● Improved access to information: Farmers can now access global knowledge and best practices through the internet and other communication channels, leading to improved farming techniques.
o Example: Krishi Vigyan Kendra (KVK) provides agricultural information, training programmes and extension services
● Exposure to diverse market and consumer preferences: Understanding global food trends and demands helps Indian farmers adapt their production methods and diversify crops.
o Example: Increasing popularity of grains like quinoa and millets, has opened new export opportunities for Indian farmers, encouraging them to cultivate these crops.
● Technology transfer and updations: New technologies like precision agriculture, improved irrigation systems, and access to global research promote efficient farming practices and higher yields.
✔ Negative impacts
● Intellectual Property Rights: It have detrimental effects on Indian agriculture, as they facilitate the entry of multinational corporations into the sector, posing a threat to marginal farmers.
o Example: In 1990s, an attempt by a US company to patent the use of neem, sparked protests and legal challenges, ultimately leading to the patent being revoked.
● Competition from subsidized agriculture: Indian farmers face competition from heavily subsidized agricultural imports from developed countries, putting them at a disadvantage in terms of pricing.
● Environment degradation: Intensive farming practices to meet global demands can lead to soil erosion, water depletion, and overuse of pesticides, impacting long-term sustainability.
o Example: Excessive reliance on groundwater for irrigation in the Kutch region has resulted in seawater intrusion, salinizing agricultural land and threatening long-term productivity.
● Loss of biodiversity and traditional farming practices: Increased focus on commercial crops can lead to the neglect of traditional crops and varieties, contributing to biodiversity loss.
o Example: Some of the indigenous crops varieties like karhani rice (Chhattisgarh), moth beans (Karnataka), Meher dhan (Chhattisgarh) are vanishing due to mono cropping culture.
● Marginalization of small and marginal farmers: Larger-scale, export-oriented agriculture might marginalize small and marginal farmers who lack resources and infrastructure.
● Fluctuating demand and prices: Prioritizing export-driven cash crops can jeopardize food security as farmers abandon staple food production, creating vulnerability to fluctuating market prices.
o Example: The expansion of palm oil plantations in Indonesia and Malaysia has sometimes occurred at the expense of food crops, leading to concerns about food security.
Impacts of Globalisation on Family
✔ Positive Impacts:
● Changes in gender roles: Globalization leads to changing gender roles within marriages, with wives seeking increased economic independence and participation in decision-making.
● Inter-caste and inter-religious marriages: Increased interaction with diverse communities encourages inter-caste and inter-religious marriages.
● More choice and agency: Globalization empowers individuals, mainly women, to make informed choices about their future, choosing partners based on shared values and compatibility, not just family obligations.
● Changing economic nature of families: Earlier families worked as a unit of production but with globalization, new economic opportunities emerged thus made families as unit of consumption.
o Example: Shift of people working in family agriculture to working in manufacturing companies.
● Technology for communication and connection: With advances in communication technology, families can stay connected more easily despite geographical distance.
o Example: Apps like WhatsApp, Facebook Messenger, Skype helps families and friends to connect despite geographical distance.
✔ Negative impacts
● Nuclear families: Increased mobility and migration for work replaces joint families, potentially weakening traditional support systems and impacting cultural values.
o Example: As per census 2011, 70.11% families in India are nuclear families
● Consumerism and materialism: Consumerism and materialistic values can influence family expectations and priorities, replacing traditional values with emphasis on possessions and status.
o Example: The lavish weddings and expensive dowries, influenced by media portrayals and social media trends, can strain families financially and create unrealistic expectations.
● Increased divorce rates: As individual aspirations and expectations evolve, divorce rates might rise, challenging traditional notions of marriage stability.
o Example: India was having one of the lowest rates of divorces globally. But as per United Nation, divorce rate in India is increasing significantly in recent years.
● Increased stress and insecurity: Globalisation increased competition and job displacement, workloads and led to rapid social change all increased stress and insecurity among people, especially youth.
Impacts of Globalisation on culture
✔ Positive Impacts:
● Cultural exchange and understanding: Increased exposure through globalization allow Indians to experience diverse cultures, fostering empathy, tolerance, and appreciation for differences.
o Example: Travel allows Indians to experience different cultures through attending international festivals, visiting historical sites, and interacting with people from diverse backgrounds.
● Global recognition and appreciation: Indian art, music, dance, and cinema are gaining wider recognition and appreciation on the global stage, leading to increased cultural exchange.
o Example: Platforms like Netflix and Amazon Prime are increasingly featuring Indian films and series, exposing global audiences to Indian stories and talent.
● Enrichment of art and music: Fusion of traditional art forms with global influences leads to innovation and broader appeal, attracting new audiences and preserving cultural heritage.
o Example: Anoushka Shankar, renowned sitar player is redefining classical Indian music for a global audience, performing at major festivals and collaborating with diverse musicians.
● Celebration of new festivals: With cultural influences from around the world through globalization, people celebrate festivals of other cultures.
o Example: Adaptation of Western holidays like Valentine's Day and Halloween alongside traditional Indian festivals.
● Digitization of cultural heritage: Increased awareness and funding initiatives support the preservation and digitization of traditional art forms, languages, and cultural artefacts.
o Example: To showcase the glory of Hampi through Indian Digital Heritage Programme, used 3D laser scan data, Augmented Reality, holographic projections and 3D fabrication were used.
✔ Negative impacts
● Westernisation and cultural homogenisation: Overexposure to Western culture can lead to the dilution of unique Indian traditions and values, potentially threatening cultural identity and diversity.
o Example: A report by the National Institute of Nutrition, India found a rise in the consumption of processed foods, potentially impacting traditional diets.
● Commercialization and exploitation: Cultural expressions may be commoditized for profit, undermining their authenticity and neglecting the interests of artists and communities.
o Example: Yoga, a traditional Indian practice, has become a global fitness trend, leading to concerns about commercialization and exploitation of its spiritual and philosophical aspects.
● Erosion of social structures and community values: Traditional family structures and social support systems might weaken due to individualism and consumerism, impacting community cohesion and shared values.
● Spread of fundamentalism: Due to rapid social change, economic inequalities, fundamentalist movements emerges with a sense of belongingness based on strict interpretation of religious texts.
o Example: Many social media platforms like Twitter, YouTube were used for rise and propagation of ideologies of ISIS.
● Cyber-security threats: Online platforms might be used to spread misinformation, hate speech, and harmful content, impacting cultural harmony and potentially inciting violence.
o Example: The spread of misinformation in Bengaluru in 2012 against people from North East affecting cultural harmony.
Impacts of Globalisation on Food and Festival
✔ Positive Impacts:
● Diversification of food choices: Due to the introduction of international cuisines and the availability of imported ingredients the diversity of food choices available in India.
o Example: The rise of casual dining restaurants offering Italian, Japanese, Thai, Mexican, and other global cuisines in major Indian cities.
● Cultural exchange of food: Globalization has facilitated the exchange of culinary traditions and festival practices between India and the rest of the world.
o Example: The introduction of spices like turmeric, cardamom, and chili peppers through trade routes centuries ago has significantly influenced global cuisines.
● Improved quality and safety standards: International collaborations and regulations can lead to stricter food safety measures and improved quality control for exported and imported food items.
o Example: The Codex Alimentarius Commission (CAC) is an international food standards body established jointly by the Food and Agriculture Organization (FAO) and WHO.
● Global recognition of festivals: Globalization showcase Indian festivals which attracts international tourists and participants, boosting cultural exchange and appreciation.
o Example: Gained global recognition, attracting tourists and participants from various countries to experience the joyful and colourful celebrations.
● Commercialisation and economic benefits of festivals: Festival-related tourism, merchandise, and celebrations generate economic opportunities for local communities and businesses.
o Example: Festivals like Diwali and Holi have become opportunities for businesses to promote sales through advertising campaigns and special offers.
✔ Negative impacts
● Health concerns: The adoption of unhealthy eating habits and sedentary lifestyles, influenced by global food trends, has contributed to rising rates of obesity and diet-related diseases in India.
o Example: Study showed a significant rise in obesity and overweight individuals in India between 1975 and 2015, particularly in urban areas. (Indian Council of Medical Research)
● Homogenisation and loss of local flavours: Overexposure to Western fast-food chains and standardized flavours might threaten the diversity and uniqueness of traditional Indian cuisines.
● Dependence of imported ingredients: Reliance on imported ingredients can make Indian food production vulnerable to price fluctuations and supply chain disruptions.
o Example: 2021-2022 cooking oil crisis created global price surges of edible oils, driven by factors like drought and reduced production in major exporters due to Russia-Ukraine crisis.
● Commercialisation and loss of authenticity of festivals: Excessive commercialization can overshadow the religious and cultural significance of festivals, prioritizing profit over tradition.
● Standardisation and loss of local variations of festivals: Large-scale festival celebrations might lose the unique aspects and regional variations that contribute to their cultural richness.
Impacts of Globalisation on Women
✔ Positive Impacts:
● More participation in education: Globalization improved access to education enabling women to pursue higher education, acquire new skills, and know about their rights and opportunities.
o Example: Literacy rate of women in 2011 census is 65.46%, whereas in 1991, it was 39%.
● Employment opportunities: Globalization has led to the expansion of industries such as textiles, garments, IT, and services, providing more job opportunities for women in both urban and rural areas.
o Example: Share of women in IT sector is nearly 36% of IT sector workforce. (NASSCOM reports)
● Increased independence of women: Increase independence, particularly in urban settings is evident in the prevalence of inter-caste marriages, single motherhood, and cohabitation arrangements.
o Example: In India, the number of single mothers is rising, with 4.5% of all Indian households run by single mothers. (UN Women, 2019-2020 report)
● Empowerment through technology: Technological advancements provided women with platforms to connect, communicate, and access resources and opportunities.
o Example: Hashtags like #MeToo and #TimesUp are used in social media to create global conversations about sexual harassment and assault.
● Awareness of women’s rights: Globalization helped the spread of awareness about women's rights and gender equality issues through international networks, advocacy groups, and media channels.
o Example: Malala Yousafzai, a Pakistani activist for female education, shot by Taliban became a powerful symbol of the fight for women’s rights.
● Gender equality: Globalization increased awareness on gender like unequal pay, limited access to education and healthcare, and cultural norms that restrict their mobility and autonomy.
o Example: World Conference on Women held in Beijing, 1995 created the Beijing Declaration and Platform for Action, which many nations consider a roadmap for achieving gender equality.
✔ Negative impacts
● Cyber-security and online harassment: Increased internet access exposes women to online harassment, hate speech, and risks to privacy, jeopardizing their safety and freedom of expression.
o Example: 33% of women under 35 say they have been sexually harassed online, while 11%of men under 35 say the same. (Pew Research in American population)
● Cultural and social dislocation: Globalization brought rapid social and cultural changes that disrupt traditional gender roles and norms, leading to tensions and conflicts within families and communities.
● New forms of exploitation: Patriarchal mind-set among Indians has resulted in commodification of women, the utilization of social media for harassing women, and a surge in violence against women.
● Digital Divide and Exclusion: Unequal access to technology and digital literacy can further marginalize communities, limiting their ability to access crucial information and opportunities.
o Example: In developing countries, internet penetration rate for adult women is 41% compared to 53% for men. (International Telecommunication Union, 2019 report).
Impacts of Globalisation on Environment
✔ Positive impacts:
● Technological advancements: Globalization encourage research and development in clean technologies like renewable energy, pollutions control methods, and resource efficiency techniques.
o Example: Advanced waste treatment technologies like plasma gasification uses high temperature plasma it converts waste in syngas, a clear fuel source.
● Environmental awareness: Global communication and media exposure raise awareness about issues like climate change, deforestation, and pollution, promoting individual and collective action.
o Example: Social media movement #FridaysForFuture headed by Greta Thunberg used online platforms to connect young climate activists worldwide.
● International cooperation: Global agreements and treaties can facilitate coordinated efforts to address environmental challenges that transcend national borders.
o Example: Paris Agreement and the Convention on Biological Diversity.
● Sustainable practices sharing: Sharing of knowledge on sustainable resource management, waste reduction, and ecological conservation across countries leads to positive environmental outcomes.
o Example: Through knowledge sharing and coordinated action, Montreal Protocol helped countries to work together on ozone layer depletion.
● Shifting consumer preferences: Growing awareness can influence consumer preferences towards eco-friendly products and services, driving demand for sustainable practices within industries.
o Example: Platforms like Amazon is slowly shifting to environment friendly packaging after consumers are being increasingly vocal about environmental impact of packaging.
✔ Negative impacts
● Increased resource consumption: Global trade and economic growth lead to increased consumption of natural resources, putting pressure on ecosystems and contributing to resource depletion.
o Example: Global shift towards electric vehicles increased demand for Lithium. Chile, a major Lithium producer is facing several environmental consequences like water pollution by this.
● Pollution and waste generation: Industrial production and transportation associated with globalization can generate air, water, and land pollution, harming ecosystems and human health.
o Example: India ranked 180th position in Environment Protection Index, 2022 which is lower than the neighbouring states like Bangladesh, Vietnam, Myanmar and Pakistan
● Deforestation and habitat loss: Increased demand for agricultural land and timber can lead to deforestation and habitat loss, contributing to biodiversity loss and disruptions in ecosystem services.
o Example: Deforestation of Amazon Forest for Soybean cultivation.
● Trans-boundary environmental problems: Pollution, invasive species, and climate change can easily transcend national borders, requiring complex international cooperation to address them effectively.
o Example: Amazon rainforest fire outbreaks lead to air pollution in nearby countries.
● Unequal Distribution of Environmental Costs: Developing countries often bear a disproportionate burden of environmental degradation and pollution due to the outsourcing of polluting industries and unequal trade relationships.
Impacts of Globalisation on Caste System
✔ Positive impacts:
● Education and awareness: Globalization has facilitated greater access to education and information, leading to increased awareness and consciousness about caste discrimination and social injustices.
o Example: Literacy rate of Scheduled caste is 66.1% in 2011 census, whereas in 1991 it was only 37.41%
● Economic mobility: Globalization helped for economic mobility and entrepreneurship, allowing individuals from lower castes to access education, employment, and business opportunities.
● Increasing flexibility: Rigid caste system is becoming more flexible, evident in the increasing prevalence of inter-caste marriages, social mingling, and interactions among different caste groups.
o Example: Inter-caste marriages in India is nearly 5% of all marriages. (Indian Statistical Institute study, 2017)
● Increased exposure and awareness: Access to information and online communities can empower marginalized castes to connect and advocate for their rights.
o Example: The hashtag, #DalitLivesMatter brings together voices globally to highlight caste discrimination and violence, promoting solidarity and international awareness of the issue.
● Urbanization: Urbanization created new social and economic spaces where traditional caste distinctions may be irrelevant, leading to greater social mixing and intermingling of castes.
✔ Negative impacts
● Digital divide: Marginalized communities, including lower castes often lacks access to digital resources and opportunities.
o Example: Only 4 per cent of the students from ST and 4 per cent of the students from SC have access to computer with internet facility (India Inequality Report 2022: Digital Divide)
● Deepening inequalities: As a result of skill deficiencies, globalization has compelled marginalized caste groups to gravitate towards the informal sector, engaging in low-skilled labour positions.
o Example: Over 74% of the workforce enrolled in e-Shram portal belongs to Scheduled Castes (SC), Scheduled Tribes (ST) and Other Backward Classes (OBC).
● Rigid nature of caste system: Despite transformations, the caste system has displayed remarkable resilience and persists as a prominent characteristic of Indian society.
o Example: Caste specific jobs like manual scavenging is still prevalent in country even if it is prohibited by law.
● Cyberbullying and online discrimination: Caste-based discrimination and hate speech can migrate to online platforms, impacting individuals and communities.
Impacts of Globalisation on Education
✔ Positive impacts
● Increased literacy rate: Globalization led to increase in literacy rates by enhancing access to diverse educational resources, innovative teaching methods, and cross-cultural exchanges.
o Example: Literacy rate in India in 2011 census is 74.04%, whereas in 1991 census it was 52.11%
● International collaborations: International collaboration and partnerships between Indian educational institutions like student exchange programs, joint research initiatives, and faculty collaborations
o Example: Indian physicists of Tata Institute of Fundamental Research (TIFR) participate in research projects at CERN
● Access to Information: Globalization has facilitated greater access to information and knowledge through the internet and digital technologies.
o Example: SWAYAM platform provide one integrated platform and portal for online courses.
● Enhanced research and development: Global partnerships and funding facilitate research projects in various fields, contributing to knowledge advancement and addressing global challenges.
o Example: Indo-U.S. Vaccine Action Program (VAP) focus on laboratory-based research, testing for clinical development, vaccine quality control, delivery of vaccines etc.
● Exposure to new methodologies: Globalization allows educators and institutions to access international teaching techniques, curriculum frameworks, and educational resources.
o Example: Several India schools adopted flipped classroom techniques enhancing student engagement and comprehension in local classrooms.
● New technologies to India: Globalization brought advanced technologies to India, which stimulates innovation and drives development across various sectors.
o Example: Information Technology, artificial intelligence, cloud computing, Internet of Things, 3D printing
● Standardisation and quality assurance: Efforts are made to align Indian educational standards with international benchmarks and accreditation systems to enhance the credibility and recognition of Indian qualifications globally.
o Example: Creation of National Assessment and Accreditation Council (NAAC) in 1994 for accrediting higher education institutions in India.
✔ Negative impacts
● Westernisation of curriculum: Concerns exist about potential homogenization of the curriculum, neglecting local cultures and knowledge systems in favour of Western-centric models.
o Example: The debate around the inclusion of African literature in the English curriculum of South Africa.
● Digital divides: Unequal access to technology and internet connectivity across regions and income groups can exacerbate existing disparities in educational opportunities.
o Example: The total number of internet subscribers per 100 people in rural areas stands at 34. (Oxfam India Report, 2022)
● Brain drain: Talented graduates and researchers might migrate to countries with better opportunities, leading to a loss of skilled professionals in India.
o Example: As per OECD data, around 69,000 Indian-trained doctors and 56,000 Indian-trained nurses worked in the UK, US, Canada, and Australia in 2017.
● Commercialisation of education: Increased competition and private sector involvement might prioritize profit over quality, impacting affordability and accessibility for marginalized communities.
Impacts of Globalisation on Indian Entertainment and Media
✔ Positive impacts:
● Growth of entertainment industry: Globalization has fuelled the economic growth of the Indian entertainment industry, creating employment opportunities and attracting investments.
o Example: Films like "Dangal" and "Baahubali" series have achieved massive box office success in China and other markets.
● Technological advancements: Globalization has accelerated the adoption of new technologies like streaming platforms, digital distribution, and social media, which expanded reach and accessibility.
o Example: Global streaming giants like Netflix, Amazon Prime, and Disney+Hotstar have invested in India, producing original content, acquiring local titles, and expanding their subscriber base.
● International collaborations and co-productions: Partnerships with international studios and artists have led to high-quality productions, sharing of expertise, and increased global visibility.
o Example: The Spanish crime drama series, Money heist gained a wider audience when the series streamed through Netflix.
● Cultural exchange and diversity: Globalization has led to an exchange of cultural ideas, values, and entertainment formats between India and other countries.
o Example: Director Vishal Bhardwaj's adaptation of Shakespeare's "Othello" in movie “Omkara” reset the tragedy in the context of rural Uttar Pradesh.
● Market expansion and revenue growth: Globalization has opened up new markets for Indian entertainment and media companies.
o Example: Film Dangal (2016) was released in China with Chinese subtitles in 2017.It became the highest-grossing Indian film ever in China and one of the top-grossing foreign films there.
● Competition and innovation: Globalization has intensified competition within the Indian entertainment and media industry by spurring innovation and creativity.
o Example: Domestic OTT platforms like Hotstar, ZEE5, SonyLIV rise innovated to compete with global OTT platforms.
● Content diversity and exposure: Global exposure has broadened the horizons of Indian audiences, introducing them to new genres, formats, and perspectives from around the world.
o Example: Surging popularity of Korean dramas (K-dramas) on streaming platforms has exposed Indian audiences to new storytelling styles, themes, and cultural references.
✔ Negative impacts
● Privacy and censorship concerns: Increased digital footprints and data collection raise concerns about individual privacy and potential censorship pressures from various stakeholders.
o Example: Social media platforms like Twitter and YouTube contributes to an increased digital footprint and data collection by these companies.
● Spread of misinformation and harmful content: Globalization can facilitate the spread of fake news, hate speech, and other harmful content through media.
o Example: During the COVID-19 pandemic, fake news about unproven cures, conspiracy theories, and targeted hate speech against specific communities circulated widely on social media.
● Dependency in foreign platforms: Dependency on foreign platforms and digital distribution channels may lead to a loss of control over content distribution and revenue generation for Indian creators.
o Example: Creators who rely on YouTube or Netflix are subject to these platform’s content policies, ranking algorithms, and monetization terms, which may limit their ability to control how their content is distributed, promoted, and monetized.
● Cultural homogenisation: Concerns exist about the potential loss of unique Indian cultural elements and values as mainstream media gets influenced by Western trends and aesthetics.
● Domination of global giants: The entry of established foreign media companies might overshadow local players, limiting their reach and audience share.
● Self-censorship by creators: Fear of backlash or restrictions might lead creators to self-censor their work, stifling artistic expression and critical discourse.
Cryptocurrency
Impact of Cryptocurrency in Society
✔ Positive impacts:
● Increased investment opportunities: Cryptocurrency has provided new investment opportunities for people around the world thus increasing their wealth.
o Example: Digital assets like Bitcoin and Ethereum provided new investment options.
● Emergence of one currency for the world: The rise of a single borderless digital currency that operates independently of national governments.
o Example: Though unsuccessful, Facebook's global stablecoin, Libra (now Diem) aimed to be a borderless digital currency backed by a basket of real-world assets
● Fast and cheap transactions: Cryptocurrencies offer faster transaction, lower fees and potentially reduced risk of fraud when compared with traditional payments thus help in remittance payment.
o Example: Traditional money transfer like Western Union take several days to complete international transactions, while cryptocurrency transactions can be settled within minutes.
● Alternative to gold: Cryptocurrencies act as an alternative investment option, challenging the dominance of gold among people, which has been a preferred asset class due to its cultural significance and perceived stability.
● Young investors: Growth in cryptocurrency led to emergence of young investors.
o Example: A report by Zebpay, a leading Indian cryptocurrency exchange, found that majority of their user base falls under the Millennial and Gen Z demographic.
● New employment opportunities: Cryptocurrency industry has created job opportunities, thus helps in reducing unemployment.
o Example: Jobs like blockchain developers, cryptocurrency traders and analysts, content creators and educators, compliance specialists, marketing professionals.
● Economic empowerment: Cryptocurrency helped individuals to take control of their finances and investments, bypassing traditional financial intermediaries and allowing for greater financial autonomy.
● Technological innovation: Cryptocurrency has spurred technological innovation, with the emergence of blockchain start-ups and initiatives exploring decentralised finance (DeFi) and other applications.
o Example: Walmart has partnered with IBM to use blockchain technology to ensure food security by improving traceability in their supply chain.
✔ Negative impacts
● Social divide: Access to technology and knowledge can exacerbate the digital divide, leaving some segments of society excluded from this financial system.
o Research shows that just 0.01% of bitcoin holders controls 27% of the currency in circulation.
● Regulation and uncertainty: Governments around the world has expressed concerns about the use of cryptocurrencies for illegal activities, leading to regulatory uncertainties and bans on cryptocurrency trading.
o Example: In 2018, RBI banned banks from dealing with cryptocurrency exchanges, while the ban was overturned by the Supreme Court in 2020, the RBI continues to express concerns about financial stability and money laundering.
● Speculation and volatility: Cryptocurrency markets are highly speculative and volatile which can lead to both opportunities for profit and risks of financial loss for investors globally.
o Example: In 2021, Dogecoin, a cryptocurrency, saw its price skyrocket after tweets by Elon Musk and other celebrities. However, the price dropped significantly later.
● Money laundering and crime: Cryptocurrencies can be used for illegal activities due to their anonymous nature, posing challenges for law enforcement.
o Example: The now-defunct dark net market Silk Road relied heavily on Bitcoin for transactions.
● Challenges to traditional financial systems: Cryptocurrencies decentralize financial transactions and could potentially undermine the control and influence of traditional financial institutions.
● Environmental impact: The energy intensive nature of cryptocurrency mining like Bitcoins raised concerns of carbon emission and energy consumption.
o Example: A 2022 study by the Cambridge Bitcoin Electricity Consumption Index estimates that Bitcoin mining consumes more electricity than some entire countries.
Globalisation 4.0
Globalization 4.0 refers to the current phase of globalization, characterized by the increasing integration and interdependence of economies, societies, and cultures through the use of advanced technologies.
Features of Globalisation 4.0
✔ Technological advancements: It is driven by the proliferation of digital technologies such as artificial intelligence, blockchain, big data analytics, and the Internet of Things (IoT)
✔ Interconnectedness: Data, systems, and processes across sectors and borders are highly integrated, fostering collaboration and decentralized innovation.
✔ Impact on labour market: Globalization 4.0 is accompanied by concerns about the impact of automation and digitalization on employment, with fears of job displacement and the need for upskilling and reskilling the workforce.
✔ Focusing on sustainability and inclusivity: There is an increasing emphasis on sustainability, environmental stewardship, and inclusive growth in Globalization 4.0.
Challenges associated with Globalisation 4.0
✔ Job displacement and inequality: The rapid adoption of automation and AI in Globalization 4.0 raises concerns about job displacement and growing income inequality.
● Example: Chatbots and AI-powered virtual assistants are increasingly replacing human customer service representatives in various industries
✔ Digital divide: Unequal access to technology, digital literacy, and infrastructure gaps hinder the participation of marginalized communities in the digital economy, widening existing inequalities.
● Example: The total number of internet subscribers per 100 people in rural areas stands at 34. (Oxfam India Report, 2022)
✔ Data Privacy and Cybersecurity: The extensive use of digital technologies in Globalization 4.0 raises concerns about data privacy, security, and governance.
● Example: Aadhaar controversy on data privacy.
✔ Environmental impact: While promoting sustainability is a goal, the widespread adoption of new technologies also comes with potential environmental concerns, such as e-waste and energy consumption.
● Example: Global e-waste will increase by 38% till 2030. (Global e-waste monitor report, 2020)
✔ Geopolitical tensions: Competition over resources, data, and technological dominance could exacerbate geopolitical tensions and instability.
● Example: US- China tech rivalry for dominance in areas like artificial intelligence, 5G technology, and cybersecurity.
✔ Ethical considerations: Issues like algorithmic bias and the potential misuse of AI raise ethical concerns. Responsible development and use of technology are essential.
✔ Mental health implications: The fast-paced, digitally driven environment can contribute to mental health issues like anxiety and social isolation.
Measures to be taken
✔ Digital inclusion: expanding broadband infrastructure, reducing the cost of internet access, and providing digital literacy training to ensure equitable participation in the digital economy.
✔ Reskilling and upskilling initiatives: Implement training programs to equip workers with the skills needed for emerging jobs in the AI and automation era.
✔ Data protection and privacy regulations: Develop strong legal frameworks to protect personal data and prevent misuse.
✔ Algorithmic transparency and accountability: Implement frameworks to ensure algorithms are transparent, unbiased, and used responsibly.
✔ Multilateral agreements: Facilitate international cooperation on issues like data governance, environmental sustainability, and cybersecurity.
✔ Strengthening international institutions: Support stronger international organizations to address global challenges effectively.
✔ Social investment and education: Increase investment in education, healthcare, and social protection to promote equal opportunities for all.
Globalization, the ever-growing interconnectedness of our world, presents a complex dance between progress and preservation. We can embrace the positive aspects of globalization while remaining mindful of our cultural identities. This doesn't mean resisting change entirely. Change is inevitable, and sometimes, necessary for growth. Instead, we can celebrate our unique cultural heritages while reforming outdated traditions and incorporating positive influences from around.
Previous Year Questions (PYQs)
1. Elucidate the relationship between globalization and new technology in a world of scarce resources, with special reference to India. (2022)
2. What is Cryptocurrency? How does it affect global society? Has it been affecting Indian society also? (2021)
3. Is diversity and pluralism in India under threat due to globalization? Justify your answer. (2020)
4. How have digital initiatives in India contributed to the functioning of the education system in the country? Elaborate your answer. (2020)
5. ‘Globalization is generally said to promote cultural homogenization but due to this cultural specificities appear to be strengthened in the Indian Society.’ Elucidate. (2018)
6. To what extent globalisation has influenced the core of cultural diversity in India? Explain. (2016)
7. Discuss the positive and negative effects of globalization on women in India. (2015)
8. Critically examine the effect of globalization on the aged population in India. (2013)
Society
Globalisation
Globalisation and Caste
Globalisation and Environment
Globalisation and Women
Globalisation and Agriculture
Cryptocurrency
General Studies Paper 1
Globalization