The correct option is 1 and 3 only.
Explanation
Globalization integrates domestic economies with the world economy through the cross-border flow of trade, capital, and technology. While this offers consumers lower prices and greater variety, it exposes domestic producers, particularly small-scale industries, to intense international competition.
Statement-wise Analysis
- Statement 1 is Correct. Small producers in specific industries such as batteries, capacitors, plastics, toys, tyres, dairy products, and vegetable oil have faced severe challenges due to globalization. The influx of cheaper imported goods has made it difficult for these domestic units to compete on price and quality.
- Statement 2 is Incorrect. While the small industries sector (MSME) is a vital component of the Indian economy and employs a vast number of people (over 110 million), agriculture remains the sector employing the largest number of workers in India. The MSME sector is the second-largest employer, not the first.
- Statement 3 is Correct. Due to the inability to compete with cheaper imports and multinational corporations, many small manufacturing units have been forced to shut down. This closure of units has resulted in significant job losses, rendering many workers jobless.
Key Takeaway
Globalization has created a "survival of the fittest" environment where small producers often struggle against cheaper imports, leading to industrial sickness and unemployment in specific sectors, even though agriculture remains the primary employer in the economy.