Quick answer: The main positive effects of globalisation are faster economic growth, large falls in extreme poverty, export jobs, foreign direct investment, technology transfer, cheaper and better products, wider consumer choice, manufacturing for world markets, remittances, access to global capital, better education, faster spread of medicines, growth of domestic brands abroad, cultural exchange and cooperation on global problems.
| Indicator | Value |
|---|---|
| India exports FY25 | About $825 billion |
| Remittances FY25 | About $135 billion |
| Gross FDI FY25 | About $81 billion |
| Global extreme poverty | About 38% (1990) to under 10% (2019) |
In 1991, India had barely enough foreign exchange to pay for three weeks of imports. In FY25, its exports of goods and services reached a record $825 billion. Most of that change traces back to the decision to open the economy to world trade and investment, which is what globalisation means in practice.
Globalisation has real costs, which we cover in our piece on the negative effects of globalisation. Here are 15 benefits, each with an example you can check.
15 Positive Effects of Globalisation
1. Faster Economic Growth
Open economies can sell to bigger markets and attract investment. India’s GDP growth averaged roughly 6% a year in the three decades after 1991, against about 4% in the three decades before it.
2. Big Falls in Extreme Poverty
The World Bank estimates the share of the world’s population in extreme poverty fell from about 38% in 1990 to under 10% before the pandemic, with China and India accounting for most of the drop.
3. More Jobs in Export Industries
India’s IT and business services industry employs about 5.8 million people (NASSCOM, FY25), mostly serving overseas clients.
4. Foreign Direct Investment
Global companies bring money, technology and management practice. India received gross FDI inflows of about $81 billion in FY25.
5. Transfer of Technology
Maruti’s tie-up with Suzuki in 1982 brought Japanese manufacturing methods to Indian car-making, and the supplier network that grew around it still powers the industry.
6. Cheaper and Better Products
Competition from imports pushes local firms to improve. Indian consumers waited years for a landline in the 1980s; today mobile data costs are among the lowest in the world.
7. Wider Choice for Consumers
Shoppers can buy brands, foods and services from across the world, often through e-commerce platforms.
8. Manufacturing for the World
Apple’s suppliers now assemble iPhones in India for export, part of smartphone exports that crossed $24 billion in FY25.
9. Remittances
Indians working abroad sent home about $135 billion in FY25, the highest of any country, supporting millions of households.
10. Access to Global Capital
Indian companies raise money abroad through ECBs, foreign listings and foreign portfolio investment in Indian shares and bonds.
11. Better Education and Skills
Students study abroad, universities collaborate on research, and online courses spread knowledge across borders.
12. Faster Spread of Medical Advances
Vaccines, drugs and medical devices reach more countries faster. India’s generic drug makers, in turn, supply a large share of the world’s affordable medicines.
13. Growth of Indian Brands Abroad
Tata (Jaguar Land Rover, Tetley), Infosys and Mahindra compete in global markets because borders opened both ways.
14. Cultural Exchange
Food, music, films and ideas travel. Indian cinema and yoga have found worldwide audiences.
15. Cooperation on Global Problems
Climate change, pandemics and financial crises need joint action, through bodies such as the WTO, WHO and G20.
India Before and After Opening Up
| Indicator | Around 1991 | Recent |
|---|---|---|
| Foreign exchange reserves | About $1.2 billion (June 1991) | Around $700 billion (2025) |
| Exports of goods and services | About $25 billion | About $825 billion (FY25) |
| Remittances received | About $2 billion | About $135 billion (FY25) |
These gains were not shared equally, and some sectors and regions lost out. But on most measures of growth and income, globalisation has done far more good than harm for India. For the policy side, see factors affecting the business environment.