Nobel prize winner Joseph E. Stiglitz, described “globalisation as a double-edged sword. For those willing to seize the opportunities and manage globalisation on their own terms, it has provided the basis of unprecedented growth.” Taking full advantage of globalisation India has managed a historically unprecedented growth rate for more than a decade and half. Following the Washington consensus in the last quarter of 20th century, international institutions including the World Bank and the International Monetary Fund mounted a sustained campaign to push liberalisation of national economies and privatisation of their public sector. Empirical studies have amply demonstrated that the benefits of the globalisation have not been shared by all the countries. Even in the same country, the benefits arising out of globalisation have not filtered to the various strata of the population and disparities have widened. Thus, there are transparent inequalities amongst the countries as also within the same oountry. India is no exception to the latter. In most of the poorer countries in Africa growth rates have not registered any improvements and the number of people below poverty line has in some cases doubled. Moreover there is reluctance of developed countries in removing the trade distorting subsidies in agriculture and giving duty-free market access to the least developed countries with very limited exportable products.

The issue is how has India reaped benefits of globalisation? To assume that economic, fiscal, trade and allied policies initiated by the government created an environment which facilitated economic advancement on these fronts will amount to manipulation of ground realities. The foremost factor which engineered the growth in India was emergence of a self-reliant middle class equipped with strong knowledge base with technical qualifications. They pursued innovative businesses requiring managerial and technical skills in the upcoming sectors like information technology and other allied fields. Instead of the traditional industry-led growth path followed by the west and other developing countries India opted for services-led growth which had visible, tangible results. In the manufacturing sector, technological innovation, low-cost production, ability to quickly adapt to changes, establishing world class R & D facilities etc., greatly helped in successfully meeting global competition.

The automobile industry is a classic example. Strong presence of Non-Resident Indians (NRIs) in the developed countries occupying senior management positions in several multinational corporations built confidence in Indian managerial competence and leadership. This promoted MNCs’ networking with India (as also in China) with its expanding domestic market which in the present circumstances remained the only viable option for their sustained growth in future. The success stories of businesses controlled by NRIs in the western markets established India’s reputation as dependable and disciplined businessmen. Well established democratic political framework, large young population ingrained with absorption capacity of new technologies have all created a responsive realisation that India is marching ahead. The initiative largely of its private sector in expanding connectivity by improved telecommunications, low-cost air transportation and vast press, TV and other media penetration ignited awareness amongst all sections of its people of a bright future and thus radically changed their peroeption, thinking and actions.

Furthermore the entire world took note of unexploited potentials of India in becoming a competitive centre of excellence and cost efficiency.