Globalization Affects How India Runs Its Economy

Globalization brought India into global economic markets and now impacts its economy. Since the 1991 economic reforms India has seen a major rise in foreign capital investments that support industrial growth and technological progress. By growing exports in IT services and other products India earns foreign currency that drives higher GDP and employs more people. Since the global opening the local businesses confront business cycle risks plus endure damage from world-wide economic downturns and geopolitical conflicts. —-

Major Economic Struggles of Current India

1. Unemployment: A rising number of workers faces economic challenges especially in small business areas and rural communities.

2. Inflation: Higher costs of food and fuel heavily affect both family purchasing habits and purchasing power.

3. Income Inequality: People have unequal access to wealth while growth benefits stay distributed among few individuals.

4. Agricultural Distress: Farmers depend solely on monsoon rains for farming and struggle under low productivity and deep financial debt.

5. Environmental Challenges: When industries develop they cause environmental problems by polluting air and soil while using up natural resources.