The Inherent Impact Of Globalization On India's Telecommunication Marketing Industry

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The Inherent Impact of Globalization on India’s Tele­Communication Marketing Industry 1.1 Overview of India’s Economic History.
Existing for almost 200 years as a British Colony, India only gained political and economic independence in 1947. From India’s independence to 1991, economic policy developed to become more efficient and facilitated free market economic conditions. This was shown by subsequent increases in the GDP growth rate following drastic economic policy change. India’s economic timeline is generally split up into four phases by the aforementioned changes in policy [1]
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As the first Prime Minister of India, the world’s new largest democracy, Jawaharlal Nehru garnered attention and praise from historians, although his policies proved to be detrimental to
India`s economic development. Nehru had a large majority in Congress which enabled him to implement state­centric policies with ease. The lack of efficient economic policy and the fact that
India was recovering from years old economic oppression caused extreme poverty across the country. Nehru and the Congress Party had immense public support which should have been used to pass forward­thinking legislation. Instead of using the nation’s political consensus to evoke immense economic growth, Nehru’s policy focused on centrally driven programs
[2]
. The conservation of public support and national unity was prioritized over economic growth, which caused extreme fluctuations in India’s GDP during Nehru’s term as Prime Minister. Nehru died in 1964 and was succeeded by Lal Bahadur Shastri. The second phase in Indian economic growth is marked by the presidency of Indira Gandhi, who was elected in 1966. In the course of her first term in office, Gandhi passed several Acts in order to retain and increase the power of the state. These included the Monopolies and
Restrictive Trade Practices Act, the Banking Companies Act, and the Foreign Exchange
Regulation Act. This legislation served to restrict both domestic and private companies and foreign trade and direct investment from other countries. Since Gandhi focused on maintaining political power rather than inciting socio economic progress, political consensus was lost, which made a state­centric political model unsustainable
[3]
. The Indian public`s political diversity manifested itself through the election of two new Prime
Ministers over three years, between 1977 and 1980, before Indira Gandhi returned to office.
Indira took steps to establish the groundwork for economic reform, which would continue to develop after her assassination in 1984, when Rajiv Gandhi took office. Although the state continued to focus on India`s economy, businesses were also given more freedom, enabling them to better react to economic changes in supply and demand. Nonetheless, India`s government continued to control cash flow and management in certain sectors, including telecommunications. Government control proved to be less efficient than privatization and required large costs. The national debt caused by these costs created an economic crisis and intervention by the International Monetary Fund (IMF) was required.

The financing provided by the IMF facilitated economic and political change that was detrimental to India`s future success. For example, Manmohan Singh, who was elected in 2004, ushered in a new economic age by relaxing some of the strict economic policies and increasing the separation between the government and the economy. This included the privatization of the telephone industry as well as the reduction of strict anti­trade regulations which encouraged foreign investment in the Indian economy. 1.2 How India`s history affects telecommunication.
International trade gave the world’s countries the option of not being fully self sustaining, freeing up capital and resources to specialize in a smaller set of goods or services, increases the efficiency of those…