Discuss the impacts of globalisation on unorganized sector jobs and wages in India.

National Statistical Commission in 2012 had stated that the unorganised or the informal sector account for more than 90 per cent of the workforce in the country and almost 50 per cent of the national income.
Globalization has played a very important role in the generation of employment in India. In the unorganized sector as well, there has been an increase in various sectors which has improved the rate of employment in the country. As per the recent surveys, there has been a significant increase in the number of people working in the unorganized and allied sectors. The pay package in all these unorganized sectors have also increased to a great extent.
However, the economic trends in employment show that in most sectors women’s employment has been drastically affected by mechanisation which is a consequence of increased globalisation in order to meet the global standards.  The tendency of displacement of women workers in the informal sector by machines has been accentuated under globalisation.
Further, there has been a removal of earlier protections for small-scale industry, also alterations in the market for informal sector products because of penetration by large industry due to globalisation has have been the unwanted consequence.
Also due to liberalization and globalisation policies, Indian markets get flooded with MNC products. The small scale industries which generally hire unorganized labour become unfit to face the competition from the MNCs and get closed down. Therefore, many lose out on employment and ultimately wages also.
Therefore, globalisation can be considered to be a double edged sword. It has definitely put India on the global platform but at the same time it is of no celebration for the unorganized sector.

Question for UPSC Mains:
Discuss the impacts of globalisation on unorganized sector jobs and wages in India.

Published: January 2, 2017 | Modified:June 27, 2019

Comments