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SAI INTERNATIONAL SCHOOL
SESSION 2020-21
CLASS-X

ECONOMICS- Ch-4- GLOBALISATION AND THE INDIAN
ECONOMY
LESSON NOTES
SUB-TOPIC- 7
Impact of globalization in India &The struggle for a fair globalisation

Impact of Globalisation in India

Positive impacts :
(i) MNC’s have increased their investment in India eg. Industries like cell
phones, automobiles, electronics etc.
(ii) New jobs were created
(iii) Local companies supplying raw materials prospered.
(iv) Companies benefitted from increased competition
(v) Raised production standards
(vi) Made collaborations and emerged MNC’s
Negative impacts :
(i) Small manufactures have been hit hard due to foreign competition.
(ii) Educated and unskilled workers have become jobless due to closure of
various units.
(iii) Globalisation has a negative impact on most of the small industries which
employ the largest number of workers after agriculture.

SEZs (Special Economic Zone)

In recent years, the central and state government in India are taking special
steps to attract foreign companies to invest in India. Industrial zones, are being
set up.
(i) SEZs are to have world class failities: electricity, water, roads,
transport, storage, recreational and educational facilities.

(ii) Companies who set up production units in the SEZs do not have to pay
taxes for an initial period of five years.

(iii) Government has also allowed flexibility in the labour laws to attract foreign
investment.

The Struggle for a Fair Globalisation

Fair globalisation creates opportunities for all and also ensures that the