The correct option is 2 and 3 only.
Explanation
Globalization involves the integration of the domestic economy with the global economy through the free flow of trade, capital, services, and technology. In the Indian context, the economic reforms of 1991 facilitated this integration, resulting in varied impacts across different sectors of the economy.
Statement 1 is Incorrect:
Globalization has enabled, rather than restricted, Indian companies to expand their operations globally. The liberalization of trade and investment rules allowed Indian firms to access foreign markets, technology, and capital. Consequently, companies like Tata Motors, Infosys, Ranbaxy, and Asian Paints successfully transformed into multinationals (MNCs).
Statement 2 is Correct:
Globalization has created vast opportunities for the services sector, particularly in Information Technology (IT) and data processing. Advancements in telecommunications and the ability to deliver services across borders in real-time have allowed Indian companies to provide low-cost, high-quality services to global clients (e.g., Business Process Outsourcing).
Statement 3 is Correct:
For many small-scale producers, globalization has posed significant challenges due to stiff competition from cheaper imports. Industries manufacturing goods such as batteries, toys, tires, and plastics often lack the technology and scale to compete with large MNCs or cheap foreign goods, leading to the closure of units and job losses in the unorganized sector.
Key Takeaway:
Globalization has a dual impact: it fosters the growth of the service sector and large domestic corporates (Indian MNCs) but creates severe competitive pressure on small-scale manufacturing units, often threatening their survival.