Extent of Globalisation of the Goods Market in India

The measure of the extent of globalization of the goods market in India can be determined by examining the share of imports and exports in overall output. This measure provides a comprehensive understanding of how integrated India's goods market is with the global economy. Let's explore this in more detail:

1. Share of Imports in Overall Output:
- The share of imports in overall output indicates the extent to which India relies on foreign goods to meet domestic demand.
- If the share of imports is high, it suggests that India is heavily dependent on foreign countries for its goods and is more integrated into the global market.
- On the other hand, a lower share of imports implies a greater level of self-sufficiency and lower integration with the global market.

2. Share of Exports in Overall Output:
- The share of exports in overall output reveals the extent to which India is involved in international trade and the global supply chain.
- A higher share of exports indicates that India is actively participating in the global market by selling its goods to foreign countries.
- This suggests a higher level of integration with the global economy and a greater reliance on exports for economic growth.

3. Share of Imports and Exports in Overall Output:
- The combined share of imports and exports in overall output provides a more comprehensive measure of the extent of globalization.
- If both shares are significant, it indicates that India is both importing a substantial amount of goods and exporting a significant portion of its output.
- This suggests a high level of integration with the global market, as India is actively engaged in both importing and exporting goods.

4. Total Exports:
- While total exports alone can provide an indication of a country's participation in the global market, it does not capture the full extent of globalization.
- Total exports only reflect the goods that are sold to foreign countries, without considering the domestic demand and reliance on imports.
- Therefore, it is not as comprehensive a measure as the combined share of imports and exports.

Conclusion:
The most accurate measure of the extent of globalization of the goods market in India is provided by the share of imports and exports in overall output (option C). This measure takes into account both the reliance on foreign goods and the involvement in international trade, providing a comprehensive understanding of India's integration with the global economy.