Question

State whether the following statement is True or False with reasons.

Globalisation has created several problems.

Options

• True

• False

Answer 1

This Statement is True.

Reasons:

1. The process of globalisation in the Indian context received an impetus in 1991, when Dr. Manmohan Singh, the then Finance Minister of India, put into effect the New Economic Policy. It was popularly called the ‘LPG Policy’ – Liberalisation, Privatisation and Globalisation. It is a process that ‘opened up the skies’ for the Indian economy.
2.  India became part of a wider global economic world where there could be free trade, free flow of capital and resources, free enterprise, etc.
3. This economic policy brought in much scepticism and criticism. Globalisation has had several positive and negative consequences. Globalisation also led to an increase in production. This in turn has led to large-scale marketisation.