Labour Welfare Essay

THIRTY EIGHTH SESSION OF
THE INDIAN LABOUR CONFERENCE
NEW DELHI

ITEM-I : IMPACT OF GLOBALISATION ON THE INDIAN ECONOMY PARTICULARLY ON EMPLOYMENT AND HOW TO MEET THE CHALLENGES

EXECUTIVE SUMMARY

1. That globalisation is now a reality has come to be reckoned by all sections of the society. The Government has introduced a series of far-reaching economic reforms in trade and industry as well as in external, financial and public sectors. These reforms have had a salutary effect on the economy resulting in higher GDP growth, reduction in poverty, lowering of inflation, increase in foreign direct investment etc.   There is, however, deceleration in the growth of employment from 2.23% per annum in pre-reform era (1987-88 to 1993-94) to less than 1% in post-reform period (1993-94 to 1999-2000). The major areas of concern are the informalisation of jobs as well as stagnancy of employment in the organized sector at 2.8 crore. Although there is no empirical evidence to suggest the specific causes, it is the general impression that globalisation necessitating adoption of capital intensive technologies could be the main factor behind this unusual phenomenon.   Further, an opinion is often expressed that outdated labour laws are also partly responsible for the tardy growth.

2. The globalisation has thrown up major challenges of raising production and productivity in synchrony with employment generation. The strategy evolved by the Government is to accelerate the pace of economic growth from around 6% at present to 8% during the 10th Plan with particular emphasis on sectors having potential for additional employment and better spread of income to the low income segments. The recommendations of the two Expert Committees set up by the Planning Commission, namely, the Task Force on Employment Opportunities and the Special Group for creating gainful employment for one crore people per year would constitute core of the future strategies for employment generation and...