The present paper deals with one of the most important aspects of Indian economy: Globalisation. The paper gives a comprehensive definition and meaning of globalisation. Further the Indian context of globalisation has been discussed in a detailed manner enabling the reader to know and understand the Indian perspective of globalisation. Paper is also concerned with explaining the effects of globalisation on India and Indian economy as a whole. Later the author has further classified these effects of globalisation in two parts: favourable and non favourable i.e. positive and negative. Positive aspects of globalisation includes Growth of GDP, Building foreign exchange reserves, Huge FDI inflows, Growth of outsourcing market, Market capitalisation, Growing number of billionaires in India. Whereas the negatives of globalisation counts agriculture taking back seat, increase in rural areas, increased sectoral disparity, uneven or unbalanced development and growth, rich becoming richer and poor becoming poorer, increased slum areas, higher dependence on MNCs. These are the major areas the paper is going to cover. The reader after reading the paper would be easily able to understand the meaning, definition and Indian aspect of globalisation along with its positive and negative effects on Indian economy.

KEYWORDS: FDI, Outsourcing, Foreign Exchange, Liberalisation and Devaluation.