Economics


Chapter : 4. Globalisation and the Indian Economy

Negative Aspect Of Globalisation

Negative Aspect Of Globalisation
1. Exploitation of workers :
Large MNCs with world wide network look for the cheapest goods in order to maximise their profits. Workers are forced to work for long hours and work night shifts on a regular basis during the peak season. Workers are denied their fair share of benefits brought by globalisation.
2. Less importance to agriculture :
New economic policy of globalisation has ignored the significance of agriculture sector in the Indian economy.
3. Failure in poverty alleviation :
It has failed to solve the problem of poverty which is a major economic problem of India. The process of globalisation has widened the gap between the rich and poor.
4. Problem for small scale Industries :
The MNCs have entered in the production of such items which were earlier reserved for small scale industries. The small scale industries have failed to compete with the MNCs.
5. Competition and uncertain employment :
Globalisation and the pressure of competition have substantially changed the lives of workers. Faced with growing competition, most employers these days prefer to employ workers ‘flexibly’. This means that workers jobs are no longer secure.

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