Between the World and the Street: Globalization’s Quiet Impact on India’s Small Businesses

Since 1947, India has followed a mixed economy, where economic activity is carried out by both the public and private sectors. In 1991, India was formally introduced to globalization policies.

Globalization is often understood as the integration of the world economy. It views the entire planet as a single system, especially for decision-making and business activities.

The idea of globalization is highly nuanced. Some see it as a new era of consumer choice and

economic opportunity, while others view it as harmful to domestic economies. As a result, opinions on globalization vary widely. In many cases, globalization has had adverse effects, especially on developing countries like India.

Agriculture is one of the most important sectors in India and remains the main source of income for a large part of the population. More than 60% of India’s population depends on agriculture, either directly or indirectly. Agriculture becomes especially relevant in discussions on globalization because it is already unpredictable due to climate change, rising input costs, and dependence on high-yield variety seeds.

After the economic reforms of 1991, the primary focus shifted towards industries and businesses,

particularly the service sector. Since then, agricultural growth has shown a downward trend. Earlier, the agriculture sector provided employment to more than 70% of India’s population, but this number has significantly reduced over time. This decline has affected employment rates and has also had a strong impact on small businesses across the country.

While many argue that globalization has increased consumer choice, cultural awareness, and

cooperation between countries, it has also created serious challenges for small businesses in India. On the positive side, globalization has improved access to global markets, increased the use of technology, and enabled small businesses to sell through platforms such as Amazon and other online marketplaces.

At the same time, globalization has increased competition from multinational corporations and large companies. Heavy reliance on global markets makes small businesses more vulnerable to changes in international demand. Small vendors often struggle as consumers increasingly prefer multinational brands and large shopping malls over local sellers. This raises an important question: while globalization has brought certain benefits, has it come at the cost of India’s small businesses?