What are the positive impacts of Globalization on Industry?

Positive impacts of Globalization on the industry are:

1. Delicensing, removal of government restrictions on industries and liberalization of foreign investments have reduced the time and money spent in formal procedures for obtaining approvals from the government. This has shifted the focus of enterprises to the actual business of production thus lowering project costs.

2. Exports have increased so also has the volume of trade.

3. Policies in areas of foreign investments have attracted inflow of foreign capital especially in sectors like electrical equipments , services and telecommunication.

4. Indian industries and financial institutions have undertaken investments abroad. Several Indian companies have entered into joint ventures with foreign companies. They are becoming internationally competitive.

5. India is increasing it’s export orientation through setting up of SEZs (Special Economic Zones) and they are making their international presence felt through mergers and acquisitions.

6. Industrial labour has become more efficient and skilled due to increased competition and inflow of foreign knowledge. There is a rise in industrial productivity which is reflected in higher industrial wages.Instances of industrial sickness have gone down.

7. The goods produced by Indian industries in this competitive scenario, sold at competitive prices give higher levels of satisfaction to the Indian consumers as they are of superior quality.

8. The small scale sector is growing more robust with preferential loans, microfinance and other forms of credit being made available. Some SSEs have grown into medium scale operations.

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