Question
How has globalisation affected the Indian economy? Discuss.
Answer :
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Skip in 10
Globalisation has had a profound impact on the Indian economy, influencing various sectors and reshaping its growth trajectory. Since the liberalisation policies of 1991, India has increasingly integrated with the global economy, leading to both opportunities and challenges. One of the most significant effects has been the growth of trade and investment. India’s participation in international trade has expanded considerably, allowing domestic industries to access global markets. This has led to increased exports in sectors like information technology, pharmaceuticals, and textiles, contributing to higher foreign exchange earnings and economic growth. Foreign Direct Investment (FDI) has also surged, bringing capital, technology, and managerial expertise into the country, which has strengthened industrial and service sectors. Globalisation has stimulated the growth of the Indian service sector, particularly information
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