Read the case study and answer the following.
In outsourcing, a company hires regular service from external sources, mostly from other countries, which was previously provided internally or from within the country (like legal advice, computer service, advertisement, security each provided by the respective departments of the company). As a form of economic activity, outsourcing has intensified, in recent times, because of the growth of fast modes of communication, particularly the growth of information technology (IT). Many services such as voice based business processes, record keeping, accounting, banking are being outsourced by companies in developed countries to India. Most multinational corporations and even small companies are outsourcing their services to India where they can be availed at a cheaper cost with reasonable degree of skill and accuracy. WTO is expected to enlarge production and trade of services to ensure optimum utilisation of world resources. WTO agreements facilitate international trade through removal of tariff and non-tariff barriers and providing greater market access to all member countries.
Globalisation of Indian Economy has resulted in :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Both positive and negative effects
Globalisation, through liberalisation and privatisation, has produced positive as well as negative results for India.
Positive: greater access to global markets and high technology. India has also become a destination for outsourcing, as the case study shows.
Negative: reforms have not benefited agriculture, where growth has slowed. Cheaper imports have also hurt the growth of industry.
NCERT (2026-27): “3.7 Conclusion The process of globalisation through liberalisation and privatisation policies has produced positive, as well as, negative results both for India and other countries. Some scholars argue that globalisation should be seen as an opportunity in terms of greater access to global markets, high technology and increased possibility of large industries of developing countries to become important players in the international arena.” |