Globalization has come to stay in the world. In a simpler mode globalization just means that the whole globe i.e. the whole world has become one vast market for the supply of all commodities and services. Although it was taking shape in the progressive countries in the eighties of the last century, it became an astonishing reality in the last decade of the millennium. It gained a bit more strength from the dissolution of the United States of Soviet Russia (USSR). Gorbachev, the last president of USSR gave two words Perestroika (restructuring) and glasnost (openness) that gave strength to whole of Europe. European countries gradually shaped themselves into European community (EC). It meant a solid backing to globalization that was already spreading like wild fire in United States of America. Thus Globalization dissolved the borders of different countries and economy in all its aspects became an international affair. Multinational Companies were already present in different countries in the form of their subsidiaries.
Globalization followed the cult of liberalization. It meant that the progressing or the backward countries became liberal and allowed the MNCs to start their business in their countries. In the beginning the multinational companies started their efforts in small countries like South Korea and Singapore on a large scale. The result was that Korea became a great industrialized country. In many aspects it is next to Japan. But the economic bag is not in the hands of Koreans. It is controlled by MNCs.
In bigger but progressing countries like India MNCs first started their subsidiaries. Lever Brothers, the world soap king had started it long back. It was later named as Unilever India. But like all other subsidiaries it pays royalty and makes payment to the Lever Brothers for the technical knowhow. It controls 85 per cent of soap and oil market in India. It is just an example. A large number of Japanese, German, British and American firms have established themselves in industrial area like Noida, Ghaziabad, Faridabad and Gurgaun near Delhi; in many Townships of Gujarat, Karnataka and Andhra Pradesh. They import original parts from their countries and assemble machines, transistors, television, computers and so many other things. In the garb of free market economy they are gradually controlling the Indian markets. Government of India has given them the advantage of having hundred per cent equities (shares).
These MNCs compete with Indian industrial concerns. Indian industrialists are generally family concerns. They are not in the hands of professionals. Birla, Tata, Modi, Reliance all are family concerns. It is rather good now that they have accepted the challenge of the multinational companies and have introduced professionalism in their production and marketing network.
This all was started since the days Man Mohan Singh was the Finance Minister. It has been followed by the later Governments. To be very clean and frank the government ought to have started liberalizing at home.. The Indian industrial units ought to have been taken into confidence and the public service undertakings ought to have been handed over to them. Steps in the direction of globalization should have followed these. Swadeshi Jagaran Manch made great efforts in checking the growth of MNCs. But it proved a drop in the ocean of global economy that has come to stay in India too.