Megha G.

Economic reforms offered the opportunities to multinational companies to expand their functions all around in the country. Many multinational companies are entering in the rural marketing. They are doing well for the sake of farmers as stated below:

(i) They are making contracts with farmers.

(ii) They are motivating farmers to grow desirable food, fruits and vegetables of the desired quality.

(iii) They are providing them seeds and other inputs.

The GDP growth was about 3.6% during 1950s and it grew at a healthy rate of more than 8% in 2010. Employment generation was 0.39% in the 1950s and it maintained some semblance of growth between 1960s and 1990s. But by the second half of the 2010s, employment generation fallen drastically. Therefore, we can conclude that employment generated in the country is commensurate with the growth of GDP in India.
The reason is that the rise in GDP is caused by employing modern and improved technology that substituted labour for machines. This failed to generate new employment opportunities in the industrial and the tertiary sectors. Thus, the industrial and the tertiary sectors failed to absorb the excess labour from the agricultural sector. As a result, disguised unemployment in the agricultural sector continued along with low levels of productivity and massive poverty. In addition to this, MNCs that played an important role in India’s economic growth provided employment only to the educated and specialised workforce. These MNCs aimed at achieving higher output levels by employing better technology rather than generating greater employment opportunities. Thus, employment generated in the country does not commensurate with the growth of GDP in India.

i. Regular salaried employees are those hired workers who are on the permanent pay rolls of their employers. They are usually skilled workers and are entitled to all types of social security benefits. The concentration of these workers is higher in the urban areas as compared to the rural areas because such jobs require skilled and specialized workers.

(ii) The opportunities to acquire and enhance such skills are available more in the urban areas. And these skills are acquired through the process of training and education that cannot be accessed in the rural areas due to the lack of investment, infrastructure and low literacy level of rural people. Further, the big companies are concentrated only in the urban areas due to the presence of infrastructure and availability of modern facilities like banks, transport and communication, etc.

(iii) The bulk for the jobs for the regular salaried employees are concentrated more in the urban areas resulting in the increase in number of the regular salaried employees.