The main reason for doing earthing in electrical network is for the safety. When all metallic parts in electrical equipments are grounded then if the insulation inside the equipments fails there are no dangerous voltages present in the equipment case. If the live wire touches the grounded case then the circuit is effectively shorted and fuse will immediately blow. When the fuse is blown then the dangerous voltages are away.
The whole of the world may be considered as a vast conductor which is at reference (zero) potential. In the UK we refer to this as 'earth' whilst in the USA it is called 'ground'. People are usually more or less in contact with earth, so if other parts which are open to touch become charged at a different voltage from earth a shock hazard exists. The process of earthing is to connect all these parts which could become charged to the general mass of earth, to provide a path for fault currents and to hold the parts as close as possible to earth potential. In simple theory this will prevent a potential difference between earth and earthed parts, as well as permitting the flow of fault current which will cause the operation of the protective systems. The standard method of tying the electrical supply system to earth is to make a direct connection between the two. This is usually carried out at the supply transformer, where the neutral conductor (often the star point of a three-phase supply) is connected to earth using an earth electrode or the metal sheath and armouring of a buried cable. Lightning conductor systems must be bonded to the installation earth with a conductor no larger in cross-sectional area than that of the earthing conductor. The advantages of earthing The practice of earthing is widespread, but not all countries in the world use it. There is certainly a high cost involved, so there must be some advantages. .