CBSE SST Economics Class 10 Chapter 4 Notes 2025 & Study Material

This chapter shows that while globalisation has transformed the Indian economy, its impacts are not uniformly positive or negative. A balanced approach is necessary to harness its benefits while addressing its challenges. By understanding the intricacies of globalisation, students can appreciate its role in shaping modern economies.

Here’s an overview of the key concepts, types, examples, and significance of globalisation and the Indian economy. The class 10 Economics Chapter 4 notes, question banks, and other study materials are made to help students understand concepts clearly, regardless of their learning style. 

CBSE Class 10 Ch 4 Globalisation and the India Economy Notes

Below, you’ll find links to downloadable PDFs of Class 10 Economics Ch 4 notes, organized by each type of question format.

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CBSE Class 10 Ch 4 Globalisation and the India Economy Experiential Activities

Below provides links to downloadable PDFs for Experiential Learning Activities in Class 10 Economics Ch 4, helping students connect their understanding of Money And Credit to real-life contexts.

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CBSE Class 10 Ch 4 Economics  Important Questions

Below, we’ve provided essential questions for Class 10 Economics Ch 4 on the topic of Globalisation and the India Economy, covering all critical areas for a thorough review.

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CBSE Class 10 Ch 4 Globalisation and the India Economy Mind maps

Below are links to Class 10 Economics Ch 4 Mind Maps that visually break down the key concepts of Globalisation and the India Economy

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CBSE Class 10 Ch 4 Economics Question Bank

Below are links to comprehensive question banks for Class 10 Economics Ch 4, offering varied question types and detailed explanations on Globalisation and the India Economy in one place.

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CBSE Class 10 Ch 4 Globalisation and the India Economy Support Material

Below, you’ll find links to Class 10 Economics Ch 4 Support Materials that include case study-based questions from NCERT topics in Globalisation and the India Economy.

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CBSE Class 10 Ch 4 Globalisation and the India Economy DoE Worksheets

Below are Class 10 Economics Ch 4 worksheets from the Department of Education, featuring case study-based questions to reinforce various concepts from the NCERT chapters on Globalisation and the India Economy.

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<red> ➜   <red> Globalisation and the India Economy Worksheet 73EM

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Brief Summary of Globalisation and the India Economy Economics Ch 4

Globalisation refers to the growing interconnection of the world's economies, societies, and cultures. It involves the flow of goods, services, capital, technology, and people across national borders. 

Key Features:

• It connects producers and consumers across the globe.
• It enables the exchange of ideas, values, and practices.
• It fosters economic interdependence among nations.

Globalisation can be seen in everyday life, from multinational companies operating worldwide to international trade of goods like electronics, clothing, and even food.

Role of Multinational Corporations (MNCs)

MNCs are at the heart of globalisation. These are large companies that operate in multiple countries, producing goods and services for global consumption.

How MNCs Operate:

• MNCs decentralize production by establishing units in different countries, focusing on regions with low costs or abundant resources.
• They promote economic integration by linking different economies through trade and production.

Example: A smartphone might be designed in the US, parts manufactured in South Korea and China, assembled in India, and sold globally.

Advantages of MNCs:

• Create jobs and bring advanced technology.
• Provide access to international markets for local producers.
• Improve infrastructure and business practices in host countries.

Factors Driving Globalisation

Globalisation has accelerated due to a combination of technological advancements and policy changes:

Technological Innovations:

• Faster and cheaper communication through the internet, emails, and mobile phones.
• Advances in transportation like cargo ships and air freight reduce delivery time and costs.

Liberalisation of Trade and Investment:

• Governments worldwide, including India, have reduced trade barriers like tariffs, duties, and quotas.
• Liberalisation encourages foreign investments, boosting domestic growth.

Globalisation and the Indian Economy

India's integration into the global economy has been significant since the economic reforms of 1991.

• Economic Reforms: The government introduced liberalisation, privatisation, and globalisation policies (LPG reforms) to attract foreign investment and trade.
• Special Economic Zones (SEZs): SEZs were created with tax benefits and world-class infrastructure to invite multinational companies.

Positive Impacts on India:

Economic Growth: Globalisation has accelerated India's GDP growth by attracting foreign investments in industries like IT, manufacturing, and services.

Technology Transfer: Indian industries gained access to advanced technologies, boosting productivity and quality.

Job Creation: MNCs and export-oriented industries have created numerous jobs, particularly in urban areas.

Consumer Benefits: Consumers have access to a wider variety of goods and services at competitive prices.

Negative Impacts on India:

Challenges for Local Producers: Small and medium enterprises struggle to compete with imported goods and multinational corporations.

Economic Inequality: Benefits of globalisation are concentrated among wealthy urban populations, leaving rural areas behind.

Environmental Concerns: Increased industrial activity has led to deforestation, pollution, and other ecological issues.

Impact on Farmers and Labourers

• Farmers face challenges due to the import of cheaper agricultural products, lowering the prices of their crops.
• Laborers working in industries linked to global supply chains often face poor working conditions and low wages.

Role of Indian Consumers

Globalisation has transformed the way Indian consumers shop and live:

• Access to international brands like Nike, Samsung, and McDonald's has increased.
• There is a shift towards a consumerist lifestyle, with more emphasis on convenience and variety.

Challenges Posed by Globalisation

Exploitation of Labour: MNCs often outsource jobs to developing countries, exploiting cheap labor with inadequate wages and poor working conditions.

Cultural Erosion: Traditional cultures and local industries face decline due to the dominance of global brands and practices.

Environmental Degradation: Overexploitation of natural resources and industrial pollution harm ecosystems.

A Balanced Approach to Globalisation

For globalisation to benefit all sections of society, governments and international organisations must work together:

• Fair Trade Practices: Promote equitable opportunities for developing countries.
• Protect Local Industries: Provide subsidies and support to small businesses to compete in global markets.
• Sustainable Development: Focus on eco-friendly practices to mitigate environmental harm.

The chapter concludes that globalisation has both positive and negative impacts. While it has opened up new opportunities for growth, innovation, and consumer satisfaction, it also poses challenges for local industries, workers, and the environment. A balanced and inclusive approach can help ensure that globalisation benefits the majority while minimizing its drawbacks.

By understanding the intricacies of globalisation and its impact on the Indian economy, students can appreciate how interconnected the world has become and how these connections shape their lives.

Key Takeaways from Chapter 4: Globalisation and the India Economy

Understanding Globalisation

Globalisation refers to the integration of economies and societies across the world, leading to increased interdependence. 

• Globalisation connects producers, consumers, and markets globally.
• It enables the free flow of goods, services, capital, and ideas.

The Role of Multinational Corporations (MNCs)

MNCs are at the forefront of globalisation. These companies operate in multiple countries, producing and selling goods and services.

• Production and Distribution: MNCs set up production units in countries where they find cheap labor, resources, or large markets.
• Interlinking of Production Across Nations: They establish connections between economies by outsourcing parts of their production to different countries.

Example: A T-shirt might be designed in the USA, manufactured in India, and sold worldwide.

Factors Facilitating Globalisation

The chapter highlights the factors that have accelerated globalisation:

• Technological Advancements: Innovations in transport, communication, and IT have reduced distances and costs, making global trade easier.
• Liberalisation of Trade Policies: Reduction of trade barriers like tariffs and quotas by countries has encouraged foreign investment and trade.

Impact of Globalisation on the Indian Economy

Globalisation has brought significant changes to India’s economy since the economic reforms of 1991.

Positive Impacts:

• Increased foreign investment, particularly in sectors like IT, retail, and manufacturing.
• Introduction of advanced technology and global business practices.
• Creation of jobs in industries linked to MNCs.
• Expansion of markets for Indian products globally.

Negative Impacts:

• Local industries face stiff competition from cheaper and high-quality imported goods.
• Small producers and artisans struggle to survive in a globalised market.
• Increased economic inequality, as benefits of globalisation are often concentrated among the wealthy.

The Role of Indian Government in Globalisation

• Economic liberalisation in 1991 opened the Indian economy to foreign investment and trade.
• Special Economic Zones (SEZs) were established to attract foreign investors by offering tax benefits and improved infrastructure.
• Policy reforms have encouraged the growth of export-oriented industries.

The Impact on Consumers

• Access to international brands and products.
• Enhanced quality of life due to better goods and services.
  However, it has also led to consumerism, with increased pressure on natural resources.

Challenges of Globalisation

• Exploitation of labor due to low wages and poor working conditions in developing countries.
• Environmental degradation caused by industrial expansion.
• Cultural erosion as traditional practices and local industries lose their importance.

A Way Forward

• Ensure fair trade practices.
• Protect local industries through supportive policies.
• Promote sustainable development by focusing on environmental conservation.

How Can This Chapter-wise Material Help Students?

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Simplifies Complex Topics

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Tailored to Different Learning Styles

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The advantages of chapter-based material are numerous, from simplifying difficult subjects to promoting better time management and consistent study habits. With its adaptability and structured approach, this method ensures that students can efficiently manage their learning and achieve academic success. Happy learning!

Frequently Asked Questions

What is globalization?

Globalization refers to the increasing interconnectedness and interdependence of economies, cultures, and people across the world, particularly through trade, investment, and communication.

How has globalization affected Indian businesses?

Globalization has provided Indian businesses with access to international markets, leading to greater competition and technological advancements, while also offering opportunities for growth and investment.

What are the impacts of globalization on employment?

Globalization has created job opportunities, especially in sectors like IT, manufacturing, and services. However, it has also led to job insecurities due to increased competition and outsourcing.

How does the Indian government manage globalization?

The Indian government manages globalization through policies such as trade agreements, foreign direct investment (FDI), and by regulating key industries to protect national interests while encouraging economic growth.

What are the negative effects of globalization on the Indian economy?

Some negative effects include inequality in income distribution, exploitation of workers in unorganised sectors, environmental degradation, and the threat to small-scale industries due to global competition.