A STUDY ON IMPACT OF LIBERALIZATION AND GLOBALIZATION OF INDIAN INDUSTRY N.BHUVANESH KUMAR 1 G.NANTHA KUMAR 2 1 Assistant Professor, PG Department of International Business, NGM College, Pollachi 2 Research Student, PG Department of International Business, NGM College, Pollachi ABSTRACT After independence, it has been the vision of Indian government to adopt some economic reforms i.e. Liberalization, Privatization & Globalization. Our govt. adopted liberalization & globalization both as important weapons to enhance industrialization and foreign trade. Now India can export & import commodities freely. The growing integration of economies and societies around the world has been one of the most hotly debated topics in international economics over the past few years. This paper explores the contours of the on-going process of Liberalization and globalization. Throughout this paper, there is an underlying focus on the impact of LPG on Indian economy. It also comments on impact of LPG on Developing countries. But Globalization has also generated significant international opposition over concerns that it has increased inequality and environmental degradation. There is a need to study the impact of globalization on developing countries from the viewpoint of inward foreign direct investment. India has made a tremendous progress in many spheres such as industries, trade, agriculture & finance. Due to liberalization and globalization, government is moving heaven & earth to solve adverse balance of payment. Keywords: Libralisation, Globalisation, Foreign Direct Investment INTRODUCTION Globalization and liberalization has greatly influenced the Indian economy and made it a huge consumer market. Today, most of the economic changes in the country are based on the demand supply cycle and other economic factors. Today, India is the worlds 12th largest economy in terms of market exchange rate and 4th largest in terms of the Purchasing Power Parity. According to a report by the World Bank, the Indian market is expected to grow at around 8 per cent in the year 2010. Globalization and liberalization has also made a positive impact on various important economic segments. Today, the service sectors, industrial sectors and the agriculture sector have really grown to a great extent. Around 54 per cent of the annual Gross Domestic Product (GDP) of India comes from the service industry while the industrial and agriculture sector contributes around 29 per cent and 17 per cent respectively. With the improvement of the market, more and more new sectors are coming up and reaping profits such as IT services, chemical, textiles, Oil industry and so on. With the increase in the supply level, the rate of employment is also increasing considerably. STATEMENTOF THE PROBLEM Trade liberalisation measures are introduced to improve the export performance of the country by reducing the barriers to trade. With the opening up of the trade sector it is expected that the country can engage in more trade relations with other Countries in without much restrictions. The ultimate objective of trade reform measure is to improve the competiveness and thereby better export performance. Thus the trade liberalisation measures will improve the export performance by improving the competitiveness, which will improve production, improve quality standards, better 48 icmrrjournal@gmail.com
marketing strategy, etc. But the trade policy reform will affectthe different sectors of the economy in a different manner, as there strategies may be different. There may be some sector specific factors determining the impact of reforms when we take into consideration industry level and firm level export performance. SCOPE OF THE STUDY The Present study examines the impact of trade liberalisation of India s exports. The study covers for a period of ten financial years starting from 2010. Thus, the study is exclusively on the impact of liberalisation and Globalization on the Indian Economy in the post-reform period. There is a need to study the impact of globalization on developing countries from the viewpoint of inward foreign direct investment. This paper explores the contours of the on-going process of globalization Liberalization and privatization. OBJECTIVES OF THE STUDY Assessing the export of oil and non-oil products. To study the export of India s foreign trade with developing Countries in. To study the Exports of Principal Commodities. To make fruitful suggestions for the growth and success of manufacturing industries in India RESEARCH METHODOLOGY The study is made for the purpose of an in depth analysis of various indicators and its effect on import and export of India s foreign trade. The methodology selected for the study will be here. The planned research design, methods of sample selection, data collection and analysis of results will be explained. DATA SOURCE The study used only secondary data, which are collected from the various sources ministry of commerce, RBI bullet in,etc.the collected data from this source have been complied and used with due care. Other publications and magazines were also used to obtain relevant information s EXIM times, the management accountant, journal of international marketing, international journal of market research. SAMPLE DESIGN The study is made for the purpose of an in depth analysis of various indicators and its effect on export of foreign trade with developing countries. The data for the study is selected based on the availability in order to execute uniformity, the parameter export data year wise is collected from 2010 to 2014. TOOLS AND TECHNIQUES Trend Analysis Growth Rate PERIOD OF THE STUDY The study covers a period of 10 years ranging from 2004 to 2014. AREA OF THE STUDY The Study area is Chosen by RBI Statistics handbook. 49 icmrrjournal@gmail.com
LIMITATIONS OF THE STUDY The study is limited only to impact of trade liberalisation of exports of manufacturing industries in India. Period of the study limited to ten years only. The data used in this study are secondary in nature as given in RBI Statistics handbook. REVIEW OF LITERATURE Dr. Raj Kumar Gautam (2012), Liberalization Impact on Indian Small Industries: An Empirical Study of Punjab, The aim of the paper is to study the impact of liberalization on the Indian Small-Scale Industry in the leading industrial state of Punjab. To ascertain the overall impact of liberalization on the performance of selected small sector units manufacturing textiles, bicycle and bicycle parts, food products and beverages and leather and leather products.kruskal-wallis test has been applied to know the significant differences among the respondents relating to different industries, age and turnover groups with respect to these statements. The test has been applied at assumed p-value =0.05. The statements with less than 0.05 p-value are considered significant and those with p-value more than the assumed value are considered to be insignificant.the findings of the study indicate that small manufacturers are affected in the liberalized era and facing lot of problems to run their businesses. It has been observed that units from all surveyed industries irrespective of age and turnover believed that liberalization has resulted into more competition, increased quality consciousness, difficulty in marketing, dumping of cheaper goods by other Countries in, reduction in profit margin and high level of customer satisfaction. Krishn A Goyal (2006), Impact of Globalization on Developing Countries in With Special Reference To India India s imports in 2004-05 stood at US$ 107 billion recording an increase of 35.62 percent comparedwith US$ 79 billion in the previous fiscal. Export also increased by 24 percent as compared to previousyear. It stood at US $ 79 billion in 2004-05 compared with US $ 63 billion in the previous year. Oil imports zoomed by 19 percent with the import bill being US $ 29.08 billion against USD 20.59 billion in the corresponding period last year. Non-oil imports during 2004-05 are estimated at USD 77.036 billion, which is 33.62 percent higher than previous year's imports of US $ 57.651 billion in 2003-04.The lesson of recent experience is that a country must carefully choose a combination of policies that best enables it to take the opportunity - while avoiding the pitfalls. For over a century the United States has been the largest economy in the world but major developments have taken place in the world economy since then, leading to the shift of focus from the US and the rich Countries in of Europe to the two Asian giants- India and China. Economics experts and various studies conducted across the globe envisage India and China to rule the world in the 21st century. India, which is now the fourth largest economy in terms of purchasing power parity, may overtake Japan and become third major economic power within 10 years. EXPORT PERFORMANCE LIBERALISATION AND GLOBALIZATION OF INDIA It has been attempted to trace out the overall export performance of Liberalisation and Globalization in India. The framework of analysis includes, Trend analysis. Growth analysis LIST OF COUNTRIES USED IN THIS STUDY India's Foreign Trade with OECD Countries 50 icmrrjournal@gmail.com
India's Foreign Trade with OPEC Countries India's Foreign Trade with Eastern Europe Countries India's Foreign Trade with Developing Asia Countries India's Foreign Trade with Developing Saarc Countries India's Foreign Trade with Developing Asian Developing Countries India's Foreign Trade with Developing Africa Countries India's Foreign Trade with Developing Latin American Countries Indian Oil Export Indian Non- Oil Exports of Principal Commodities Primary Products Exports of Principal Commodities Manufactured Goods Exports of Principal Commodities Petroleum Products Exports of Principal Commodities Agriculture and Allied Products Exports of Principal Commodities Engineering Goods ANALYSIS AND S TABLE NO: 1 INDIA'S FOREIGN TRADE WITH OECD COUNTRIES 2010 3,043.09-2015 7,672.244 11.95241 2011 3,797.67 24.79651 2016 8,116.65 5.792386 2012 4,959.69 30.59824 2017 9,380.17 15.56701 2013 5,589.61 12.70079 2018 10,175.7528 8.481539 2014 6,853.13 22.6048 2019 10,643.69 4.598551 From the above table it is inferred that in the year of 2010 India s foreign trade with OECD Countries in Export was Rs. 3,043.09 million and it decreased to Rs. 6,853.13 million in the year of 2014. To find the trend of India s foreign trade with OECD Countries in Export. Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India s foreign trade with OECD Countries in Export has a increasing trend. TABLE NO: 2 INDIA'S FOREIGN TRADE WITH OPEC COUNTRIES 2010 1,786.18-2015 4,242.188 15.71897 2011 2,437.69 36.47505 2016 4,158.19-1.98006 2012 2,782.91 19.32728 2017 4,590.593 10.39883 2013 3,422.19 22.97164 2018 5,022.996 9.419328 2014 3,665.94 7.122632 2019 5,455.399 8.608468 51 icmrrjournal@gmail.com
From the above table it is inferred that in the year of 2010 India s foreign trade with OPEC Countries in Export was Rs.1,786.18 million which is increased to Rs.3,665.94 million in the year of 2014. To find the trend of India s foreign trade with OPEC Countries in Export.Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India s foreign trade with OPEC Countries in Export has a increasing trend. TABLE NO: 3 INDIA'S FOREIGN TRADE WITH EASTERN EUROPE COUNTRIES 2010 85.08-2015 269.774 20.37034 2011 128.19 50.66996 2016 235.77-12.6046 2012 155.47 21.28091 2017 247.42 4.941256 2013 212.47 36.66302 2018 262.3758 6.044701 2014 224.12 5.483127 2019 259.07-1.25995 From the above table it is inferred that in the year of 2010 India's foreign trade with Eastern Europe Countries in Export was Rs.85.08 million which is increased to Rs.2,24.12 million in the year of 2014. To find the trend of India's foreign trade with Eastern Europe Countries in Export Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India's foreign trade with Eastern Europe Countries in Export has a decreasing trend. TABLE NO: 4 INDIA'S FOREIGN TRADE WITH DEVELOPING ASIA COUNTRIES 2010 2526-2015 6,267.299 14.34298 2011 3,192.54 26.38717 2016 6,278.57 0.179838 2012 4,350.93 36.28428 2017 7076 12.70082 2013 4,683.71 7.64848 2018 7,631.9468 7.856795 2014 5,481.14 17.02561 2019 7,873.43 3.16411 From the above table it is inferred that in the year of 2010 India s foreign trade with Asia Export was Rs.2,526 million which is increased to Rs.5,481.14 million in the year of 2014. To find the trend of India s foreign trade with Asia Export Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India s foreign trade with Asia Export has a increasing trend. 52 icmrrjournal@gmail.com
TABLE NO: 5 INDIA'S FOREIGN TRADE WITH DEVELOPING SAARC COUNTRIES 2010 396.46-2015 1,169.793 11.11256 2011 530.19 33.73102 2016 1,283.48 9.718557 2012 640.48 20.80198 2017 1,514.16 17.97301 2013 822.12 28.35998 2018 1,652.8986 9.162744 2014 1,052.8 28.05916 2019 1,744.84 5.562434 From the above table it is inferred that in the year of 2010 India s foreign trade with Saarc Export was Rs.3,96.46 million which is increased to Rs.1,052.8 million in the year of 2014. To find the trend of India s foreign trade with Saarc Export Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India s foreign trade with Saarc Export has a increasing trend. TABLE NO: 6 INDIA'S FOREIGN TRADE WITH DEVELOPING ASIAN DEVELOPING COUNTRIES 2010 2,129.54-2015 5,097.511 15.1111 2011 2,662.35 25.01996 2016 4,995.08-2.00943 2012 3,710.45 39.36748 2017 5,561.82 11.34596 2013 3,861.6 4.07363 2018 5,979.0242 7.501217 2014 4,428.34 14.6763 2019 6,128.56 2.501007 From the above table it is inferred that in the year of 2010 India s foreign trade with Asian Developing Countries in Export was Rs. 2,129.54 million which is increased to Rs. 4,428.34 million in the year of 2014. To find the trend of India s foreign trade with Asian Developing Countries in Export Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India s foreign trade with Asian Developing Countries in Export has a increasing trend. TABLE NO: 7 INDIA'S FOREIGN TRADE WITH DEVELOPING AFRICA COUNTRIES 2010 494.23-2015 1,864.959 17.03025 2011 723.55 46.39945 2016 1,859.84-0.27448 2012 982.5 35.78882 2017 2,126.11 14.31682 2013 1,327.3 35.09415 2018 2,313.5228 8.814821 2014 1,593.57 20.06103 2019 2,392.38 3.408534 53 icmrrjournal@gmail.com
From the above table it is inferred that in the year of 2010 India s foreign trade with Africa Export was Rs.4, 94.23 million which is increased to Rs.1, 593.57 million in the year of 2014. To find the trend of India s foreign trade with Africa Export Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India s foreign trade with Africa Export has a increasing trend. TABLE NO: 8 INDIA'S FOREIGN TRADE WITH DEVELOPING LATIN AMERICAN COUNTRIES 2010 305.54-2015 973.761 26.64339 2011 459.73 50.46475 2016 741.26-23.8766 2012 642.8 39.8212 2017 713.62-3.72879 2013 796.54 23.91724 2018 740.7722 3.804854 2014 768.9-3.47001 2019 685.98-7.39663 From the above table it is inferred that in the year of 2010 India s foreign trade with Latin American Countries in Export was Rs. 3,05.54 million which is increased to Rs. 7,68.9 million in the year of 2014. To find the trend of India s foreign trade with Latin American Countries in Export Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that India s foreign trade with Latin American Countries in has a decreasing trend. (`in billion) Year Exports(`) Growth(`) 2004 163.97-2005 314.04 91.52284 2006 515.33 64.09693 2007 845.2 64.01141 2008 1,141.92 35.10648 2009 1,233.98 8.061861 2010 1,328.99 7.699476 2011 1,887.79 42.04697 2012 2,679.15 41.91992 2013 3,307.9 23.46826 2014 3,802.5 14.95208 TABLE NO: 9 INDIAN OIL EXPORT Year Trend(`) Growth(`) 2015 3,689.08-2.98285 2016 4,386.53 18.90598 2017 4,948.21 12.80453 2018 5,509.88 11.35108 2019 5,843.01 6.045972 From the above table it is inferred that in the year of 2004 Indian Oil Export was Rs.1,63.97 million which is increased to Rs.3,802.5 million in the year of 2014. Through Trend analysis it is found that Indian Oil Export has a increasing trend. 54 icmrrjournal@gmail.com
TABLE NO: 10 INDIAN NON- OIL EXPORT Year Exports(`) Growth(`) 2004 2,769.69-2005 3,439.35 24.17816 2006 4,048.85 17.72137 2007 4,872.59 20.34504 2008 516.72-89.3954 2009 7,173.57 1288.29 2010 7,126.35-0.65825 2011 9,541.43 33.88944 2012 11,980.45 25.56242 2013 13,035.29 8.804678 2014 15,139.32 16.14103 Year Trend(`) Growth(`) 2015 14,875.275-1.7441 2016 17,243.35 15.91954 2017 19,347.38 12.20198 2018 20,908.632 8.06958 2019 21,451.41 2.59595 From the above table it is inferred that in the year of 2004 Indian Non-Oil Export was Rs. 2,769.69 million which is increased to Rs. 15,139.32 million in the year of 2014. Through Trend analysis it is found that Indian Non-Oil Export has a increasing trend. TABLE NO: 11 EXPORTS OF PRINCIPAL COMMODITIES PRIMARY PRODUCTS Year Exports(`) Growth(`) 2004 455-2005 608.97 33.83956 2006 725.08 19.06662 2007 890.78 22.85265 2008 1,109.26 24.52682 2009 1,165.26 5.048411 2010 1,252.34 7.47301 2011 1,496.47 19.49391 2012 2,200.79 47.06543 2013 2,533.39 15.11275 2014 2,914.56 15.04585 Year Trend(`) Growth(`) 2015 2,801.65-3.87402 2016 3,295.73 17.63535 2017 3,676.9 11.56557 2018 3,864.12 5.091824 2019 4,058.07 5.01922 From the above table it is inferred that in the year of 2004 Exports of Principal Commodities Primary Product was Rs. 4,55 million which is increased to Rs. 2,914.56 million in the year of 2014. Through Trend analysis it is found that Exports of Principal Commodities Primary Product has a increasing trend. 55 icmrrjournal@gmail.com
TABLE NO: 12 EXPORTS OF PRINCIPAL COMMODITIES MANUFACTURED GOODS Year Exports(`) Growth(`) 2004 2,228.29-2005 2,728.72 22.45803 2006 3,212.61 17.73322 2007 3,842.61 19.61022 2008 4,145.99 7.895155 2009 5,664.02 36.61442 2010 5,464.56-3.52153 2011 7,198.63 31.73302 2012 8,885.99 23.44002 2013 9,954.41 12.02365 2014 11,623.83 16.77066 From the above table it is inferred that in the year of 2004 Exports of Principal Commodities Manufactured Goods was Rs. 2,228.29 million which is increased to Rs. 11,623.83 million in the year of 2014. Through Trend analysis it is found that Exports of Principal Commodities Manufactured Goods has a increasing trend TABLE NO: 13 EXPORTS OF PRINCIPAL COMMODITIES PETROLEUM PRODUCTS (`in billion) Year Exports(`) Growth(`) 2004 163.97-2005 314.04 91.52284 2006 515.33 64.09693 2007 845.2 64.01141 2008 1,141.92 35.10648 2009 1,233.98 8.061861 2010 1,328.99 7.699476 2011 1,887.79 42.04697 2012 2,679.15 41.91992 2013 3,307.9 23.46826 2014 3,802.5 14.95208 Year Trend(`) Growth(`) 2015 11409.85-1.84085 2016 13293.25 16.50676 2017 14962.67 12.5584 2018 15558.77 3.983938 2019 16632.09 6.898464 Year Trend(`) Growth(`) 2015 3,689.08-2.98285 2016 4,386.53 18.90598 2017 4,948.21 12.80453 2018 5,509.88 11.35108 2019 5,843.01 6.045972 From the above table it is inferred that in the year of 2004 Exports of Principal Commodities Petroleum Products was Rs. 1,63.97 million which is increased to Rs. 3,802.5 million in the year of 2014. Through Trend analysis it is found that Exports of Principal Commodities Petroleum Products has a increasing trend. 56 icmrrjournal@gmail.com
TABLE NO: 14 - EXPORTS OF PRINCIPAL COMMODITIES AGRICULTURE AND ALLIED PRODUCTS Year Exports(`) Growth(`) 2004 346.16-2005 380.78 10.00116 2006 452.2 18.75624 2007 573.92 26.91729 2008 742.09 29.30199 2009 806.49 8.678193 2010 841.36 4.323674 2011 1,102.96 31.09252 2012 1,795.83 62.81914 2013 2,227.42 24.0329 2014 2,575.59 15.63109 Year Trend(`) Growth(`) 2015 2,370.72-7.95412 2016 2,979.37 25.67353 2017 3,369.25 13.08597 2018 3,759.13 11.5717 2019 3,964.51 5.463342 From the above table it is inferred that in the year of 2004 Exports of Principal Commodities Agriculture and Allied Products was Rs. 3,46.16 million which is increased to Rs. 2,575.59 million in the year of 2014. To find the trend of Exports of Principal Commodities Agriculture and Allied Products Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that Exports of Principal Commodities Agriculture and Allied Products has a increasing trend. TABLE NO: 15 EXPORTS OF PRINCIPAL COMMODITIES ENGINEERING GOODS Year Exports(`) Growth(`) 2004 570.05-2005 779.49 36.74064 2006 961.57 23.35886 2007 1,337.9 39.13704 2008 1,504.35 12.44114 2009 2,174.82 44.56875 2010 1,815.72-16.5117 2011 2,648.91 45.88758 2012 3,250.72 22.71916 2013 3,556.99 9.421605 2014 4,207.27 18.28175 Year Trend(`) Growth(`) 2015 4,206.00-0.03029 2016 4,628.21 10.03839 2017 5,106.485 10.33391 2018 5,584.76 9.366032 2019 5,951.49 6.566591 From the above table it is inferred that in the year of 2004 Exports of Principal Commodities Engineering Goods was Rs. 5,70.05 million which is increased to Rs. 4,207.27 million in the year of 2014. To find the trend of Exports of Principal Commodities Engineering Goods Trend analysis has been applied from 2015 to 2019. Through Trend analysis it is found that Exports of Principal Commodities Engineering Goods has a increasing trend. 57 icmrrjournal@gmail.com
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FINDINGS Export wise In the year of 2012 the export of India s foreign trade with OECD Countries highest growth rate for (30.59824). Through Trend analysis it is found that India s foreign trade with OECD Countries in Export has a increasing trend. In the year of 2011 the export of India s foreign trade with OPEC Countries highest growth rate for (36.47505). Through Trend analysis it is found that India s foreign trade with OPEC Countries in Export has a increasing trend. In the year of 2012 the export of India s foreign trade with Asia highest growth rate for (36.28428). Through Trend analysis it is found that India s foreign trade with Asia Export has a increasing trend. In the year of 2011 the export of India s foreign trade with Saarc highest growth rate for (33.73102). Through Trend analysis it is found that India s foreign trade with Saarc Export has a increasing trend. In the year of 2012 the export of India s foreign trade with Asian Developing Countries highest growth rate for (39.36748). Through Trend analysis it is found that India s foreign trade with Asian Developing Countries in Export has a increasing trend. In the year of 2011 the export of India s foreign trade with Africa highest growth rate for (46.39945). Through Trend analysis it is found that India s foreign trade with Africa Export has a increasing trend. In the year of 2011 the export of India s foreign trade with Latin American Countries growth rate for (50.46475). Through Trend analysis it is found that India s foreign trade with Latin American Countries in has a decreasing trend. In the year of 2005 the export of Indian Oil highest growth rate for (91.52284). Through Trend analysis it is found that Indian Oil Export has a increasing trend. In the year of 2009 the export of Indian Non-Oil highest growth rate for (1288.29). Through Trend analysis it is found that Indian Non-Oil Export has a increasing trend. In the year of 2005 the Exports of Principal Commodities Primary Product highest growth rate for (33.83956). Through Trend analysis it is found that Exports of Principal Commodities Primary Product has a increasing trend. In the year of 2009 the export of India s foreign trade with OECD Countries highest growth rate for (36.61442). Through Trend analysis it is found that Exports of Principal Commodities Manufactured Goods has a increasing trend. In the year of 2004 the Exports of Principal Commodities Petroleum Products highest growth rate for (91.52284). Through Trend analysis it is found that Exports of Principal Commodities Petroleum Products has a increasing trend. In the year of 2012 the Exports of Principal Commodities Agriculture and Allied Products highest growth rate for (62.81914). Through Trend analysis it is found that Exports of Principal Commodities Agriculture and Allied Products has a increasing trend. In the year of 2011 the export of India s foreign trade with OECD Countries highest growth rate for (45.88758). Through Trend analysis it is found that Exports of Principal Commodities Engineering Goods has a increasing trend. 60 icmrrjournal@gmail.com
SUGGESTIONS To face the challenges from the unfavorable policies and to get benefits from the favorable policies, the Government should start more cluster units, mini industrial parks, industrial societies and special economic zones for micro and small industries products, give more assistance to exporters and industrialists to get national and international quality mark certification, build geographical and common brand name, coordinate all small industrial promotional agencies, strengthen export promotion councils and commodity boards, start more design and fashion technology institutes etc. The Impact of globalization on the Indian economy are wide and could be seen from several angles such as internal and external trade, production, consumption and distribution, overall and sector wise performance, social, economical, political and cultural impacts, and macro and micro level impacts. It may be concluded that the response of the Indian industry to the changes in the economic policy has been reasonably good. Further, in order to reach greater heights, greater autonomy especially for public enterprises is necessary for industry to operate in the new economy. Relaxation of bureaucratic controls is necessary for unshackling industry, attainment of selfsustained growth with social justice. The real solution to the challenges faced by the industry is the shift in the basic character of the industry from less competition to more competition, less quality to the fair quality, primitiveness to modernity and above all from low ethics to good governance. CONCLUSION To sum up, we can say that liberalization and globalization are to be viewed specially in the perspective of National requirements and progress. Unqualified and unlimited liberalization and globalization will lead to an utter economics. But unfortunately in many of the countries, this is what is happening. Therefore, liberalization, though of the hour, is not to be taken for granted to any extent in a country, much less in India where at least two thirds of the population of the country still depend for its livelihood on agriculture, let us not forget that both the concepts of liberalization and globalization have started from the West to serve their own interests. We, Indians, on our part, will adopt both these concepts to the extent to which they are beneficial to our economy. REFERENCE Goyal K A. & P.K.Khicha, Globalization of Business: Future Challenges, Third concept, An International Journal of Ideas. Ojha. A.K., Globalization & Liberalization prospects of new world order, Third concept- An International Journal of Ideas, August-2002. Government of India, Planning Commission, 1992. Eighth Five Year Plan, 1992-97 New Delhi. And Tenth Five Year plan 2002-07 Jalan, Bimal 1996. India s Economic Policy: Preparing for the Twenty-First Century. Penguin Books, New Delhi. Child, john and David K. Tse, China s Transition and its Implications for International Business, Journal of International Business studies, Volume 32 Number 2001. 61 icmrrjournal@gmail.com