This thesis examines the impact of globalization on China and India, specifically focusing on economic, political and social domains and environmental issues. The method adopted for studying the impact of globalization is primarily descriptive and based on qualitative analysis. Since a visit to India could not be undertaken because of visa restrictions. The empirical analysis is confined to China only. The past, present and future of the socio-political and economic domains’ of the two countries under discussion are studied in depth to assess the impact of globalization in the twenty first century. The impact is determined in the first thirty to fifty years of the century and prediction is made for the whole century. The findings of the thesis are that it is generally believed by the political scientists, journalists, and analysts that China is emerging as an economic giant and India is following suit. The only disadvantage of globalization can be seen, to be the threat posed to their social systems. At the end it is suggested that the lessons of the impact of globalization on China and India should be learnt by the neighbouring states including Pakistan. The thesis also studies the utility of ‘system capabilities’ in a political system employed by the leadership, as the efficiency level of the system capabilities determines the level of development of a country. The status of ‘system capabilities’ is more important in the socio- political and economic growth of a country rather than the form of government. In China the leadership is utilizing the ‘system capabilities’ more efficiently as compared to India. This is explained by the difference in the nature of governance in the two entities.