Globalisation and Indian Society: Meaning, the 1991 Reforms, Economic, Social and Cultural Effects (UPSC Notes)

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Quick answerGlobalisation is the growing integration of economies and societies through trade, capital, technology, people and ideas. India opened up with the 1991 LPG reforms (liberalisation, privatisation, globalisation) after a balance of payments crisis. It raised growth and created IT and services jobs, but also widened inequality and pressured farmers, small firms and local cultures.

Drivers

Cheaper transport (the shipping container), the internet and mobile phones, multinational supply chains, the WTO’s lower tariffs, and capital that moves at a click. Globalisation is old (the Silk Road, colonial trade), but the speed since the 1990s is new.

India’s 1991 turn

In mid-1991 India had foreign exchange for barely two weeks of imports and pledged gold abroad. The reforms ended most industrial licensing, cut tariffs from peak rates above 150%, devalued the rupee, opened sectors to FDI, and began disinvestment. GDP growth averaged around 6-7% for the next two decades; poverty fell sharply.

Effects on Indian society

AreaGainsCosts
Economy and jobsIT-BPM services, FDI, consumer choiceJobless growth phases, informal work, competition for MSMEs
WomenJobs in services and garments, mobilityLow-paid, insecure work; female labour force participation fell till 2017-18
AgricultureExport markets for rice, spicesPrice volatility; cotton farmer distress
CultureGlobal exposure, Indian soft power (yoga, cinema, diaspora)Consumerism, homogenisation, erosion of local languages and crafts
Family and citiesNuclear families, migration for jobsCare burden on the elderly, urban slums

Glocalisation and deglobalisation

McDonald’s McAloo Tikki is the textbook example of global brands adapting locally. Since 2008, and more after COVID-19 and the US-China trade war, countries have turned to “friend-shoring”, tariffs and self-reliance. India’s Aatmanirbhar Bharat and PLI schemes, alongside new FTAs with the UAE, Australia and the UK, show the balancing act.

Globalisation: UPSC angle

For UPSC CSE

Mains GS-I: effects of globalisation on Indian society, women, culture. GS-III: reforms, trade, jobs. Essays often use the theme.

Globalisation UPSC PYQs (Prelims)

Questions UPSC has actually asked, from the official papers. Pick an option to check yourself.

No Prelims question in the Battle IAS bank is directly on this topic yet.

Mains PYQs on this topic

Questions from the official UPSC Mains papers (2023-2026 in the Battle IAS Mains bank), newest first. Each links to a model answer.

  1. UPSC Mains 2026 · GS Paper I · Q20 · 15 marks

    Evaluate the impact of globalization on Indian youths with reference to social, political, economic and cultural spheres.

    Model answer and approach

  2. UPSC Mains 2025 · GS Paper I · Q10 · 10 marks

    Do you think that globalization results in only an aggressive consumer culture ? Justify your answer.

    Model answer and approach

  3. UPSC Mains 2024 · GS Paper I · Q19 · 15 marks

    Globalization has increased urban migration by skilled, young, unmarried women from various classes. How has this trend impacted upon their personal freedom and relationship with family?

    Model answer and approach

Quick quiz

Practice · UPSC

The 1991 reforms in India were triggered by

Answer (b)

Foreign exchange reserves fell sharply.

Practice · UPSC

“Glocalisation” means

Answer (b)

For example, menu changes.

Practice · UPSC

LPG stands for

Answer (a)

1991.

FAQs

Is globalisation only economic?

No. It covers culture, technology, migration, ideas and governance too.

How did globalisation affect Indian women?

It opened jobs in services and manufacturing but much of the work is low paid and insecure.

What is deglobalisation?

A slowdown or reversal of integration, through tariffs, reshoring and supply-chain diversification.

What did India pledge in 1991?

Gold reserves, to raise emergency loans.

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Image: Rameshng, Wikimedia Commons, CC BY-SA 3.0

How to use this in Mains

GS-I

If asked: UPSC Mains 2026, GS-I: Evaluate the impact of globalization on Indian youths with reference to social, political, economic and cultural spheres.

Quote: “McDonald’s McAloo Tikki is the textbook example of global brands adapting locally.”

Use it: A neat example of glocalisation to use in the cultural section.

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