IMPACT OF GLOBALIZATION ON POVERTY IN INDIA: Cross-Country Comparative Analysis with China and Indonesia

Abstract

Poverty is one of the most significant challenges the planet is undergoing. When we look into the correlation between globalization and poverty, we come across two-fold views. Few studies indicate that globalization has boosted the poverty rate across the globe as it contributes to unequal income distribution. In contrast, some researchers believe that globalization has played a vital role in opening up the market. There are increased opportunities, and the same has led to a reduction in poverty. Several International Monetary Fund and World Bank literatures support the former view; however, many scholars and organizations working in this field argue that countless poor people cannot share the benefits of globalization and trade. Poverty is visible in all corners of the world, though its severity varies. The clutch of poverty is more aggravated in the developing and newly globalizing economies than in the developed and Organisation for Economic Co-operation and Development nations. Does globalization help or hurt the poor in the Global South? Is poverty reducing or inducing? This chapter is an attempt to unveil the relationship between globalization and poverty. The author, through a comparative analysis, tries to examine the impact of globalization on the selected countries of the Global South by looking at some critical factors of globalization, such as foreign direct investment growth, sectoral growth and labour market, gross domestic product and trade performance, and the poverty reduction rate of the selected countries after adopting economic reforms and globalization. © 2023 Taylor and Francis.