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Globalisation And The Impact On Developing Countries

Globalisation and Opening Markets in Developing Countries and Impact on National Firms and Public Governance
The Case of India

Project Co-financed by the European Union under the EU-India Small Projects Facility Programme

Scientific Coordinators Jean-François Huchet & Joël Ruet

2006

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Executive Summary: India, Globalisation and Firms

The question of ‘India in globalisation’ is relevant in a fundamental manner. It is important in itself on account of its billion-strong population, its enterprises and its development model. Modern India nurses the ambitions of a continent and has the potential of a double gamble: The emergence of world-class Indian companies busy developing specific strategies to seek realignments and strategic partnerships in world network capitalism and aiming at becoming ‘price-makers’ in their niche markets. Setting up a new development model for ‘emerging’ countries, which is not only designed to compete (and cooperate) with the Chinese model but can also be exported to developing countries of the South and which seeks above all to avoid the Manichaeism proposed to poor countries, viz. the deadlock of importsubstitution vs. a dependent integration into the hierarchical world structure of liberalism.

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No doubt a narrow path: India has the necessary industrial assets, the capacity to test its products in situ, the intellectual and human capital needed to entertain such an ambition, while it has to handle the issues of economic redistribution and social cohesion, with their strong and structuring Indian specificities. Economic globalisation of India has materialised as major changes in trade (imports of equipment as well as opening of opening of the domestic market), has combined with new regulatory and industrial policies, been accompanied by new World Trade Organisation (WTO) agreements and recent evolution on Foreign Direct Investment (FDI) policies. It is important to understand how the functioning of firms has...