Globalization would finish small scale industries in India!

Globalization would finish small scale industries in India!

"It has been said that arguing against globalization is like arguing against the laws of gravity." - Kofi Annan. This shows the inevitability of globalization. Its spreading like wildfire and it’s almost impossible to stop it. No country can isolate itself or shield itself from this phenomenon. Globalization in strict economic sense means unification of economies. Local, national and international economies completely merge with each other. This concept seems very lucrative but has its own cons. A thing in one part of the world can affect other countries' economies too. One can look at it as a choice between which damage we can bear. Isolation as well as globalization both can damage and hinder progress. It’s worth to discuss this in light of the fate of the small scale industries which are large in number in India.

Yes it is detrimental –

1. "The negative side to globalization is that it wipes out entire economies and in doing so wipes out the accompanying culture." - Peter Berger.

2. It kills the small scale industries. This is similar to when the British killed the Indian handicrafts and small industries thus hurting the self-sufficient Indian economy.

3. It overpowers them by flooding the market with cheaper goods.

4. The small scale industries cannot match the technology which the MNC and other corporations use.

5. Due to globalization, local assured markets too are falling in hands of the corporations.

6. It is only said that globalization provides market access to small industries. This is far from true. In globalization, the strong becomes stronger and the weak weaker, as the strong already has the resources to become stronger.

7. It does not increase competition and hence performance of small industries as thought. It actually crushes the small industries thus eliminating competition and creating monopoly.

8. Small scale industries are mostly labor intensive thus addressing the issue of unemployment. Globalization brings in technology which is capital intensive and needs less labor. This creates unemployment problems in countries like India where almost 80-90% workforce is in the unorganized sector which is similar to small scale industries. These surely would be adversely affected by globalization.

9. Thus globalization would surely finish small scale industries.

No, it is beneficial –

1. Globalization provides market access to hitherto small industries. They simply push them from local to global.

2. They help in expansion of small industries and give opportunities to them to make it big.

3. The fame of a product or process travels around the globe.

4. Technological expertise flows into the industry as exposure is gained to worldwide knowledge.

5. In countries like India, the government tries to provide safeguards to the small industry. Thus the benefits of globalization would increase as the government tries to shield these industries from negatives of globalization.

6. We compare globalization to British imperial policies. However we always forget a crucial point that, globalization is voluntary. Nowhere is it made compulsory and unlike British times it provides opportunities to improve and also provides markets.

7. Nowadays there are forums to address issues of unequal treatment when it comes to trade.

8. We consider advertising and taking products to all the corners of India as a positive step. This is just extended to all corners of the world in globalization. So it is no different from the national economy.

9. We always look at globalization as a phenomenon which adversely affects small industries. We must look at it as an opportunity to make it big, to expand, etc.

We must realize that globalization is a huge phenomenon which encompasses many aspects of our life. Even our cultures are showing signs of merging. Globalization is no longer restricted to the economic sphere. Our social sphere too is highly influence by globalization. The entire world is becoming a melting pot. We can look at it negatively or positively. However one must realize that we can utilize globalization to our benefit. With the protection of the government, even the small scale industries can make a mark. Ultimately each business or venture has an aim of profit. For it, it needs to expand. For expansion it needs capital and market penetration. Globalization provides those very things. At the end of the day, it’s just a matter of seizing the opportunity which can come in any form.