Tuesday, June 2, 2009

EFFECTS OF LIBERALIZATION ON PRODUCTION AND EMPLOYMENT

Liberalization of Indian economy has yielded many positive results.But considering the overall socio economic impact of liberalization in Indian context the scenario is still not something to cheer about.
It was widely believed that a liberal economy will eventually lead to better production and more employment generation, the two most important features of any successful economy.Although India has not fared badly in the first category,employment generation fore the targeted section is still not satisfactory.
Considering production of goods, today Indian markets are full of white goods, i.e, goods required and used by the upper strata of the society and produced by multinational companies,refrigerators,washing machines, inverters, air conditioning machines are to name a few.This has resulted in the growth of consumer culture with international companies dominating the market because of their high brand value,large expenditure on product development and marketing strategies.The domestic companies in the face of tough competition are losing the battle and are on the verge of extinction.Thus, though India boasts of having high mobile density,producing the cheapest car in the world, farmers still commit suicide in the countryside, more than 20% of the population still live below the poverty level.It would be, therefore, not wrong to say that the benefits of liberalization have not percolated down the social strata to enrich the poorer section of the country.
Considering employment generation, liberalization has created more white collared jobs ignoring the needs of the poor, rural people.More and more call centers are being opened,state of the art,sophisticated IT offices are being built.But beneficiaries?The privileged,educated sections of the society.But the miserable plight of the unskilled workers,poor farmers, daily wage earners is still the same.It seems the growth rate of Indian economy has not done justice to the weaker section of the society.
Therefore care has to be taken to ensure a balanced development so that domestic companies can also flourish along with their multinational counterparts,economic development results in social growth and the young Indians are free from the menace of unemployment.
NOTE:THIS ARTICLE CAN BE USED FOR ANSWERING QUESTIONS LIKE "GLOBALISATION ON POVERTY ALLEVIATION IN INDIA".


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