Globalization integration which in turn is propelled by

Globalization integration which in turn is propelled by

Globalization and Indian Textile Industry WORLD GEOGRAPHY Introduction Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international trade and investment and aided by information technology which impacts the environment, culture, political systems, economic development and prosperity, and human physical well-being in societies around the world.It involves greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment. It is like moving towards living in a borderless world. Improved technologies and a reduction of barriers has resulted in faster speed of exchange of goods, services, knowledge and cultures between people and countries. There is an increasing trend toward countries joining together economically, through education, society and politics, and viewing themselves not only through their national identity but also as part of the world as a whole.Globalization is said to bring people of all nations closer together, especially through a common medium like the economy or the Internet.

Globalization has affected the world in many different ways Industry – Globalization has led to the rise of worldwide markets where countries now have better access to foreign products. There is a great increase in the movement of material goods between and inside national boundaries. The world has seen a rapid growth of international trade within the last fifty years, and the numbers are still growing.Financial Market – Different economies of the world have greater access to funds since they now have better access to external borrowings.

Trade in national currencies has increased dramatically in the recent past to support the increasing levels of trade and investment. Economic –There is a growth of a global common market, allowing the freedom of exchange of goods and capital. Lowered restrictions on foreign direct investment have allowed corporations to set up factories in places where the cost of production is the lowest.This has increased the number of job opportunities in underdeveloped countries.

Political – Globalization has resulted in the creation of sub-state and supra-state institutions such as the EU, the WTO, the G8 or the International Criminal Court. Informational – There has been a tremendous increase in information flows between geographically remote locations due to globalization. Cultural – From food to entertainment, globalization has affected every aspect culture.For example, Japanese noodles, Swedish meatballs, Indian curry and French cheese have become popular outside their countries of origin. Movies, music, books from all over the world are now easily made available at any place, regardless of their country of creation/origin.

Technical – Globalization has led to the development of a Global Information Systems, and greater trans-border data flow, using technologies as the Internet, communication satellites, submarine fiber optic cable, and wireless telephones, which increased the number of standards applied globally.Impact of globalization on indian textile industry Indian Textile Industry The textile industry in India covers a wide gamut of activities ranging from production of raw material like cotton, jute, silk and wool to providing high value-added products such as fabrics and garments to consumers. The industry uses a wide variety of fibers ranging from natural fibers like cotton, jute, silk and wool to manmade fibers like polyester, viscose, acrylic and multiple blends of such fibers and filament yarn.

The Indian textile industry is one of the largest textile industries in the world and India earns around 27% of the foreign exchange from exports of textiles and its related products. The initiation and development of globalization and Indian textile industry took place in the 1990s. Globalization of Indian textile Industry has seen a paradigm increase in the ‘total industrial production’ factor of this Industry, which presently stands at 14%. The contribution of the Indian textile Industry towards the gross domestic product (GDP) of India is around 4% and the numbers are steadily increasing.The process of globalization and Indian textile industry development was the effect of rapid acceptance of ‘open market’ policy by the developing countries, much in the lines of the developed countries of the world. Positive effects of globalization on Indian textile industry * Today, the Indian textile industry employs around 35 million personnel directly and it accounts for 21% of the total employment generated in the economy. * Globalization has facilitated introduction of modern and efficient manufacturing machineries and techniques in the Indian textile sector.

Unorganized textile manufacturing sector in India which accounted for 76% of the total textile production is now being included in organized textile industry due to the “The National Textile Policy 2000” introduced by Ministry of Textiles under the Government of India. * This sector has become highly self-reliant and holds 17 percent to the country’s export earnings. Negative effects of globalization on Indian textile industry * Globalization has resulted in high dependency on foreign markets and economies, especially the US.Recession in these global economies tend to have severe impact on the industry. * Globalization and its by-product, modernization, of the textile industry has posed serious threat to the vast rural work force of weaver communities of the traditional handloom industry. Opportunities and Challenges created by Globalization Globalization has resulted in intense competition in both domestic and global market which is likely to reach the level of the ‘survival of the fittest’ in the coming years.This fact leads to the opportunity for Indian textile industry to capitalize on its low input costs and perform better on the quality and price fronts and capture the global markets.

Apart from capturing greater markets globally, it would additionally result in increased job opportunities and high incomes leading to better living standards. However, there is an implied threat, particularly from export-led economies, that the domestic market may face destabilization, albeit the fact that the free market offers unbridled opportunities.In addition to it, the Indian industry will essentially need to upgrade and develop its own technology. Modernization, productivity, quality and price becomes the major deciding factor as to who will survive in the long run. Conclusion With the increasing level of competition, companies will need to learn different management approaches to survive and develop in circumstances with high levels of uncertainty as well as understand the implications of future impacts, both positive and negative, in changing environment where they operate.Successful organizations will be those who are able to anticipate, determine and solve problems of a varied nature in context of their organization’s goals and in the environment of increasingly globalized and complex society.

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Impact of globalization