CBSE Class 10 Answered

Impacts of Globalisation on the Indian Economy

• Growth has been witnessed only in few selected areas in the service sector such as hospital services, information and technology, and telecommunication.
• To earn maximum profits, MNCs employed Indian workers at extremely low wages. Only in urban areas, the standard of living has improved. Their income and the quality of consumption also increased. This has led to inequalities of income in the country.
• To deal with the pressure of competition from MNCs, many Indian companies have begun to employ workers on a temporary basis so that they do not have to pay the workers for all 12 months of a year. This has resulted in companies making large profits, but workers not getting their share of benefits.
• Workers have not benefited by globalisation. Their jobs have become insecure and they have to work on low wages, as MNCs employ them on meagre salaries, in order to earn profits. Because of globalisation, while the workers have become poorer, the rich have become richer.