Change and Development in Industrial Society | Class 12 Sociology Notes

GLOBALISATION, LIBERALISATION AND CHANGES IN INDIAN INDUSTRY

This section discusses the impact of economic liberalisation and globalisation on Indian industry since the 1990s. The government adopted liberalisation policies encouraging private and foreign investment in sectors previously reserved for the public sector, such as telecom, civil aviation, and power. Licensing requirements to open industries were removed, and foreign products became widely available.

As a result, many Indian companies were acquired by multinational corporations (MNCs), while some Indian companies themselves became multinational. For example, Parle Drinks was bought by Coca Cola, whose large advertising budget increased the consumption of Coke, replacing many traditional Indian drinks.

Retail liberalisation has also affected small shops and departmental stores, raising questions about their survival amid competition.

The government has pursued disinvestment, selling its shares in public sector companies. This has caused fear among government workers about job security. For instance, after the privatisation of Modern Foods, 60% of workers were forced to retire within five years.

Outsourcing and contract labour have increased, with companies reducing permanent employees and subcontracting work to smaller firms or home-based workers. This trend is especially visible in the private sector and leads to lower wages and poor working conditions. Trade unions find it harder to organise workers in small firms.

Despite the growth of the urban middle class and service sector, most Indians lack secure jobs. Employment in government, once a major source of security, is declining. Liberalisation and privatisation are associated with rising income inequality. The government is also acquiring land for industry, often displacing farmers and adivasis, who protest low compensation and fear becoming casual labourers in cities.

This section highlights the tensions between economic growth, social change, and inequalities in India’s industrial development.

📊 Diagram: See figure_5: EMPLOYMENT IN ORGANISED SECTORS.

🔗 Connection: Prepares for '5.3 How People Find Jobs' by explaining the changing industrial landscape and employment patterns.