Ashok V. Desai has described India in 1865 when the first wave of globalization hit India creating a trade surplus.
Thus we see in the mid-19th century the first impact of globalization on India. Shipping technology changed; ships became larger and travelled further (steamers were just coming into use in 1865). With it, direction of trade changed; from trade within the Indian Ocean region, India began to trade more with Britain and China. Industrializing Britain and opium-eating China created new markets; as they expanded, India developed a massive export surplus. It did not know what to do with all that money, so it stashed away gold and silver. Was that deindustrialization? There may have been; but there was export-led growth too. For some of India
One thought on “First impact of Globalization”
There are new ports being developed and existing seaports are being upgraded and expanded. Indian shipping companies are buying new ships and large ships are calling on indian ports.
The phenomenon compares with what has been described as first impact of globalisation. Are we therefore heading towards an ere of export surpluses?