Globalization and Indian Agriculture-General Consequences

Abstract

The term globalization refers to International Integration. It includes opening up of world trade, development of advanced means of communication, internationalization of financial markets, growing importance of MNC's, population migrations and more generally increased mobility of persons, goods, services, capital, data and ideas. It is a process through which the diverse world is unified into a single society. In short it is a creation of world into a global village. It is the recent concept that has come to govern the world since end of the 20th century with the end of the cold war and melting down of Soviet Union. The need of structural changes in various world economies, dominance of market related economies, growing importance of private resources and capital and pressure of world bank and other International organizations like IMF have started this process in many of the developing countries like India. It has brought in new opportunities to developing countries. Greater access to foreign markets, technology transfer, improved productivity and higher living standard are some of the advantages of this process to the countries like India. But it has also creates new challenges like growing inequality across and within nations, volatility in financial market and environmental deteriorations. As Indian is agrarian economy it is wise to know the impact of Globalization on Indian economy. An overview of Indian agricultural sector indicates that globalization did not yield the desired results in India. It has marginally contributing in minimizing poverty, and removing social inequalities. The desired objectives of this process have not been achieved in India. As far agricultural sector is concerned we have seen mixed results in the country. It is clear with the study that agriculture plays key role in the economy. Agriculture employees 60% of Indian population, yet it contribution varies only from 15 to 20% of the GDP. After adoption of globalization in 1991 Indian agriculture growth rate increase but at present the economy condition of the farmers is not satisfactory because input cost is high and output cost is low. Cut off of subsidies are hindering growth of agricultural sector. In the words of Gamani Corea, former Secretary-General, UNCTAD, “Globalization instead of being an equalizing process, has only widened the gap between the two in terms of monopoly in science and technology, flow of capital, access to natural resources, communication and nuclear armament”