HYPERGLOBALIZATION 

2. About Hyperglobalization

Hyperglobalization refers to an increased level of interconnectedness and interdependence among countries, economies, and people on a global scale. It is a term often used to describe a phase of globalization characterized by a significant intensification of economic, political, cultural, and social interactions among nations.

Key features of hyperglobalization may include

• Hyperglobalization is marked by a surge in international trade, capital flows, and the integration of national economies into a global economic system. This is often facilitated by advancements in technology, transportation, and communication.
• Advances in communication technologies, particularly the internet, have played a crucial role in hyperglobalization by facilitating the rapid exchange of information, ideas, and culture across borders.
• Hyperglobalization is associated with increased mobility of capital across borders. Companies can easily invest in foreign markets, and financial markets become more interconnected.
• The widespread dissemination of global media, such as movies, music, and the internet, contributes to cultural homogenization, where certain aspects of global culture become more dominant, potentially eroding local cultural diversity.
• Nations become more politically interdependent as international organizations and agreements proliferate. Issues such as climate change, human rights, and global security require coordinated efforts among nations.

3. How Hyper-globalisation is measured?

Measuring hyperglobalization involves assessing various economic, social, and political indicators to determine the extent of global interconnectedness. While there is no single metric that definitively captures hyperglobalization, several indicators and indices are commonly used to gauge the level of global integration. 

• One common indicator is the ratio of a country's total international trade (exports plus imports) to its Gross Domestic Product (GDP). A high trade-to-GDP ratio is often considered an indication of a high degree of economic openness and global integration.
• The amount of foreign direct investment a country receives or makes is another metric. Foreign Direct Investment (FDI) involves cross-border investments where a resident in one country obtains a lasting interest in, and a degree of influence over the management of, a business enterprise in another country.
• Examining the movement of capital across borders, including foreign portfolio investments and other financial transactions, provides insights into the degree of global financial integration.
• The participation of countries in global value chains, where various stages of production are spread across different countries, is a key indicator of economic interdependence. Analyzing the integration of production processes across borders provides a nuanced view of globalization.
• Assessing a country's level of connectivity through information and communication technologies, such as internet usage, mobile phone penetration, and broadband access, can indicate the extent to which information flows freely across borders.
• Cultural Flows: While more challenging to quantify, cultural indicators such as the global distribution of media, international tourism, and cross-cultural interactions can provide insights into the level of cultural exchange and homogenization.
• The extent to which nations participate in international organizations, treaties, and agreements is a measure of political interdependence and cooperation.
• Assessing the movement of people across borders, whether for work, education, or other reasons, provides insights into the social and demographic aspects of globalization.

 5. What is the Economic Survey?

• The Economic Survey in the context of India refers to the annual document prepared by the Economic Division of the Department of Economic Affairs, Ministry of Finance, Government of India.
• The Economic Survey reviews the economic progress of the country and issues in the last 12 months. The survey provides information related to the performance of key developmental schemes launched by the government. The document also explains the performance of major government policies and their impact.
• The Economic Survey discusses major fiscal developments, macroeconomic factors, inflation, and other economic factors. The document also highlights the impact of agriculture, climate change, and employment on the economy of the country.
• The 1st Economic Survey was tabled in 1950-51. However, till the year 1964, it was presented along with the budget.
• The Economic Survey is an important reference for understanding the economic context in which the government formulates its budget and economic policies.

6. The Key Points of the Economic Survey 2022-23

The Economic Survey 2022-23, presented in January 2023, covered various aspects of the Indian economy and offered insights into future prospects.

Key Points

India is projected to witness a GDP growth of 6.0% to 6.8% in the fiscal year 2023-24, depending on global economic and political developments.

Positive Factors for Growth:

1. Rebound of private consumption boosting production activity.
2. Higher Capital Expenditure (Capex).
3. Near-universal vaccination coverage enabling spending on contact-based services.
4. Return of migrant workers, leading to a decline in housing market inventory.
5. Strengthening of corporate balance sheets.
6. Well-capitalized public sector banks ready to increase credit supply.

• The Economic Survey projects a baseline GDP growth of 6.5% in real terms for the fiscal year 2023-24.
• Factors Driving Growth in FY23: Private consumption and capital formation were the principal drivers. Employment generation is seen through declining urban unemployment rates and increased registrations in the Employee Provident Fund. Successful vaccination drives boosting consumer sentiments.
• Limited health and economic fallout globally from the surge in COVID-19 infections in China.
• Inflationary impulses from China's reopening are not significant. Recessionary tendencies in major Advanced Economies triggered a return of capital flows to India.
• Credit growth to the Micro, Small, and Medium Enterprises (MSME) sector has been high. Recovery of MSMEs supported by government schemes like Emergency Credit Linked Guarantee Scheme (ECLGS).
• Capital Expenditure (Capex) of the central government increased significantly. Public digital platforms and initiatives like PM GatiShakti and Production-Linked Incentive schemes contribute to economic growth.
• Construction activities have risen, aided by the return of migrant workers. The housing market witnessing a decline in inventory overhang. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) contributes to rural job creation.
• Global economic shocks include COVID-19 disruptions, the Russian-Ukraine conflict, and synchronized policy rate hikes by central banks. Global growth is projected to decline in 2023, leading to subdued trade and lower commodity prices.
• India's recovery from the pandemic is expected to continue, supported by domestic demand and increased capital investment. Private sector capital formation cycle showing signs of revival.
• Structural reforms like GST and Insolvency and Bankruptcy Code enhance economic efficiency.
• Inclusive growth is highlighted as essential for job creation. Government schemes like the Emergency Credit Line Guarantee Scheme (ECLGS) support MSMEs. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) creates job opportunities.
• India faced challenges such as disruptions due to the conflict, inflation, and monetary tightening. India's resilience is reflected in economic recovery and its ability to withstand external imbalances.
• Six global challenges were discussed, including COVID-19 disruptions, conflict in Europe, and central banks' policy rate hikes. India's ability to withstand challenges is noted, with higher growth projections compared to major economies.