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Francis Cherunilam

Globalization poses both challenges and opportunities for Indian firms. It requires firms to improve competitiveness through factors like cost, quality, innovation and service in order to survive intense foreign competition in domestic and global markets. While liberalization created a highly competitive environment, it has also helped Indian firms build competitiveness through global sourcing. Many Indian companies have achieved significant improvements and successfully expanded both in India and abroad. Overall, globalization necessitates and facilitates improving competitiveness, bringing positive transformation to Indian industry and positioning India as a manufacturing, R&D, and exporting hub globally.

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Sarvesh Shukla
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212 views1 page

Francis Cherunilam

Globalization poses both challenges and opportunities for Indian firms. It requires firms to improve competitiveness through factors like cost, quality, innovation and service in order to survive intense foreign competition in domestic and global markets. While liberalization created a highly competitive environment, it has also helped Indian firms build competitiveness through global sourcing. Many Indian companies have achieved significant improvements and successfully expanded both in India and abroad. Overall, globalization necessitates and facilitates improving competitiveness, bringing positive transformation to Indian industry and positioning India as a manufacturing, R&D, and exporting hub globally.

Uploaded by

Sarvesh Shukla
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Globalization of Indian Firms

Dr. Francis Cherunilam, Professor, School of Management Studies, Cochin University of Science & Technology, Cochin cherunilam@satyam.net.in Abstract Globalization means not only tapping foreign markets but also empowering to fight global competition in the domestic market. The liberalization, mandated by WTO or otherwise, has had a tremendous impact on the Indian business, and several Indian industries are globalizing triggered by the onslaught of globalization. Globalization poses a titanic challenge to the Indian firms. It connotes a do or die challenge to fight the foreign competition for survival. It also implies a challenge to exploit the enormous opportunities across the border unfolded by the global liberalization. Liberalization meant almost removal of growth and entry restrictions for Indian firms. It also meant removal or substantial reduction of entry restrictions for foreign firms. The result is the emergence of a highly competitive market where cost, quality, features, innovativeness, service etc are critical determinants of success. Globalization, thus, necessitates improvements in competitiveness for survival. Globalization, at the same time, helps building up of competitiveness by facilitating global sourcing. The severe shakeout of the Indian industry by liberalization has caused a commendable transformation of it so that it is gathering more and more strength to succeed in the global competition. Many Indian companies have achieved highly remarkable improvements in operational efficiency, cost, quality and customer service. Thrust on R & D has added considerable momentum to innovativeness. The results of these are becoming more and more visible. Many Indian companies are successfully fighting foreign companies in the Indian market. Many of them are penetrating foreign markets. The export-intensity of Indian companies and export-GDP ratio have been increasing. There has been a very impressive increase in the foreign investment by Indian companies in green-field enterprises and acquisitions. In fact, the major part of the growth of a number of Indian companies comes from across the border. Foreign companies have been significantly increasing their R & D expenditure in India. There is also a view that India is emerging as an R & D hub of the world. There is a growing feeling that India is emerging as a manufacturing hub in several industries. India is also emerging as an exporting hub for many products in respect of a number of foreign companies. Globalization, thus, necessitates and facilitates improvements in competitiveness. The favourable impact of globalization goes much beyond the IT sector. The resurgent manufacturing sector of India is emerging more vibrant and it would be able to make a spectacular mark on the global market, provided it gets the required infrastructural and policy support.

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