Obstacles to Globalisation

he Indian business suffers from a number of disadvantages in respect of globalization of business. The important problems are the following:-

(1) Government Policy and Procedures:-

in India are among the most complex, confusing and difficult in the world.

Even after the much publicized liberlisation, they do not present a very conducive situation. One pre requisite for success in globalization is swift and efficient action. Government policy and bureaucratic culture in India in this respect are not that encouraging.

(2) High Cast:-

of many vital inputs and other factors like raw material and intermediates, power, etc. tend to reduce the international competitveness of the Indian business.

(3) Poor Infrastructure:-

Infrastructure in India is generally inadequate & inefficient & therefore very costly. This is a serious problem affecting the growth as well as competitiveness.

(4) Obsolescene:- The Technology employed, mode & style of operations etc, are in general, obsolete & these seriously affect the competitiveness.

(5) Resistance to change:-

There are several socio-political factors which resist change & this comes in a way of modernization, vationalisation & efficiency improvement. Technological modernization is resisted due to fear of unemployment. The extent of excess labour employed by Indian Industry is alarming. Because of this labour productivity is low and this is some cases more than offsets the advantages of cheap labour.

(6) Poor Quality Image:-

Due to various reasons, the quality of many Indian product is poor is poor. Even when the quality is good, the poor quality image India has become a handicap.

(7) Small Size:-

Due to various reasons like low level of resources, in many cases Indian firms are not able to complete with the giants of other countries. Even the largest of Indian companies are small compared to the multinational giants.

(8) Supply problems:-

Due to various reasons like low production capacity, shortage of raw material and infrastructures like power and port facilities, Indian companies in many instances are not able to accept large orders or to keep up delivery schedules.

(9) Lack of Experiences:-

The general lack of experience in managing international business is another important problem.

(10) Growing Competition:-

The Competition is growing not only from the firms in the developed countries but also from the developing country firms. Indeed, he growing competition from the developing country firms is a serious challenge to India’s international business.

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