Case of Rising Competition

Many small-scale producers have been hit hard due to the advent of globalization. Let’s discuss it more with the case of an industrialist named Mohan from a small town in Andhra Pradesh. 

Mohan in the year 1991 started manufacturing electric connectors by borrowing a loan from a local bank. Electric connectors are used in almost every electric appliance like home and commercial appliances, televisions, tube lights, etc. Also, gradually Mohan extended his business and could employ around 15-20 employees under him within the span of 4 years. But then in 2001, governments of the countries had to agree with WTO to lift the restrictions on importing connectors from foreign countries. 

This import policy challenged the production of every small-scale producer of electric connectors like Mohan all over the country because television companies now buy these connectors from foreign companies now as these are available at half of the prices which earlier they used to order in large quantities from Mohan. Then the production of the year 2000 has drastically reduced to a lesser quantity in 2001, also the employees have reduced to almost half. Many production houses like Mohan’s in varied cities and states have been shut down. Not only market of these have been facing challenges but also markets for toys, capacitors, dairy products, food markets, clothing, batteries, etc. are struggling. Many have lost their jobs and suffered losses, especially in the labour intensive countries like India.

Fair Globalization: Fair Globalization means equal and fair opportunities for all the economies nationwide. Fair Globalization makes sure that it includes the welfare of all. It should not only benefit the richer and more powerful section of the country but should benefit each and everyone to call it a healthy and fair globalization. 

Units of India have been facing problems like strong competition, least secure jobs, uncertainty in employment and so on which makes it unfair for a specific section of the society. There is a strict need to protect the interests of the ones who are suffering and not favor only the richer section.