Review of policy on globalization

The degree of trade openness is one of the indicators for measuring globalization. India’s merchandise trade to GDP ratio has increased from 20.4 per cent in 2001-02 to 28.3 per cent in 2004-05 and to 32.0 per cent in 2015-16. If services trade is also included, then the degree of openness increased from 26.7 per cent in 2001-02 to 38.1 per cent in 2004-05 and further to 43.5 per cent in 2015-16.

The global slowdown had some impact on various aspects of economic activities including exports from India which declined by 0.2 percent during 2016-17 (April-October). Recently, exports showed signs of revival in September 2016 and October 2016 with a positive growth of 4.0 per cent and 9.6 per cent respectively. The World Economic Outlook of October 2016 by the International Monetary Fund states that the growth in India is robust and has predicted resilient growth for emerging markets and developing economies.

The effects of globalization vary from country to country and from time to time. India’s economic liberalization has been calibrated and cautious especially insensitive sectors such as agriculture. The government constantly reviews its economic policies to ensure that the objective of inclusive growth is achieved. In multilateral forums, the effort is to achieve results which safeguard the interests of the poor.

This information was given by the Commerce and Industry Minister Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.