Benefits of globalisation to India

By Rajalakshmi Rahul on June 9, 2012

Globalisation refers to the expansion of economic activities across political boundaries of nations (Agarwal, 2008). It results in the economic progress of a nation and a growth in economic inter-dependence between two nations. Globalisation is growing rapidly in India, along with other developing countries like South Africa and China.

The benefits of globalisation to India

Globalization of multinational corporations have been bringing several new jobs to India’s destination cities such as Hyderabad, Bangalore, etc. The benefits of globalisation to India can be summarised as follows:

  1. Increase in employment: New jobs are causing naturally more of engagements and employments (Mohapatra, 2007). Special Economic Zones (SEZs), Export Processing Zones (EPZs), etc. are set up across the country for which hundreds of people are hired. Since labour is cheap in India, developed western countries like USA and UK outsource their work to Indian companies. This in turn creates more employment.
  2. Increase in compensation: Since globalisation, the levels of compensation have been higher than what domestic firms would have provided at similar level of professional experience and qualification. According to Knowledge at Wharton (2011), mergers & acquisitions rise due to globalisation. This leads to a change in management structure. Workers are pacified with salary hikes to keep them motivated during management re-structuring.
  3. Enhancement of living standards and increased purchasing power: A huge amount of wealth generation in these cities have been going on which is leading to the development of businesses and cities are also developing with higher purchasing power for those who are working with foreign organizations. Even the domestic organizations are encouraged to pay higher compensation to their employees who enhance people to live better quality lives indirectly (Held, 1999). Thus these cities are witnessing better living standards and also development in business besides economic growth in the city.
  4. Empowerment of Indian youth: Pride of working in global organizations has been on the increase among the young professionals and that has done wonders in increasing their outstanding confidence levels even in their early 20s not seen in any other age group (Lara, 2008). This is a wide positive fact in these destination cities and this is also trickling to the young professionals in other centers of growth.

This positive phenomenon with professionalism might give further a strong motivation to the Indian economy. Growth of commercial and housing real estate industry has expanded significantly. Thus globalisation has improved the overall economic status of people as well as the Indian nation, as a whole.


  • Agarwal, M. (2008). Impact of Globalisation on Development. New Delhi: Deep Publications.
  • Knowledge at Wharton (2011). Salaries on the rise: globalisation brings more pressure to India. [online]. Available at
  • Mohapatra, A. (2007). International accounting. Prentice Hall, New Delhi.
  • Held, D. (1999). Global transformations: politics, economics and culture. Stanford University Press, USA.
  • Lara, J. (2008). Multinational corporations and the emerging network economy in Asia and the Pacific. Routledge, New York
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