What has been the impact of globalization on local industries in developing countries?

Adversely affected local industries

Globalization, with its emphasis on free movement of goods and services, has often negatively impacted local industries in developing countries. Increased imports, cheaper foreign goods, and inadequate investment in infrastructure have put domestic industries at a disadvantage, leading to challenges and decreased competitiveness.

Further, in a globalised world, developing countries are compelled to open up their economies to greater flow of goods and capital from developed countries and rendering their industries vulnerable to imported goods. However, a developing country like India still does not have the access to developed countries’ markets because of high non-tariff barriers.