(A) Globalization:

• The process of increasing a country’s economic integration with the rest of the world by increasing trade in goods and services, increasing movement of physical and financial capital, increasing exchange of technology and increasing investments between the countries is called globalization.
• The process of globalization can be done by gradually decreasing the policy controls that restricts and slows foreign trade.

(B) Process of globalization in India:

• In 1991, International Monetary Fund (IMF) declared a list of several nations who had taken enormous loans from IMF. The IMF forced those countries to globalize and upgrade the technologies and hence grow their nations. Until the countries did this, the IMF would not give any further loans.
• India was one of those countries. Hence, India had to relax its policies of providing undue protection to domestic industries from foreign competition. Thus began the process of globalization in India and India allowed its people ; to conduct more trade with other nations.

(C) The process of globalization underwent the following systematic process:

• The Import-Export licensing policy was made simpler and easier.
• India became member of World Trade Organization (WTO) in 1995. By doing so, India had to abide the rules of world trade.
• India began convertibility of Indian rupee into other currencies at market rate by gradually reducing conversion at the official rate. Hence, the value of our currency was now determined by the means of trade and not by the. government.
• India achieved sector wise systematic increase of foreign direct investment in India.
• Investors and producers in India were allowed to increase financial collaborations with their foreign counterparts.
• India changed its policies and stopped giving undue protection to Indian investors and enterprises against foreign competition.
• India strengthened its social and cultural ties with other nations. India also relaxed its policies of granting visas to people of other nations.