Impact of Globalization on Employment in India
The impact of globalization on employment in India pervades far and wide as the reforms incorporated since 1991-92 led to the entry of several key international employers in India and also served to open up various employment avenues.
The outsourcing industry has evolved out of the globalization process as the Indian government relaxed restrictions with regard to foreign investments and working of foreign companies in India. The reforms attracted the attention of the key foreign companies towards the vast pool of English-speaking and low- cost workforce in India. Foreign companies from different sectors like banking, information technology, finance, and telecommunication rushed towards India to outsource their work. The ITeS sector offers customer care services as well as back office job for its clients. Customer-care services are divided into 2 categories - technical support jobs and non-technical jobs. Other categories of jobs include accounting, mortgage collections, advisory services for mutual funds, marketing of products including healthcare products, and insurances. IT companies for their part, contribute low cost and highly qualified software developers to the outsourcing industry.
The other industry which was facilitated by globalization is the petrochemical industry as the central government established the Directorate General of Hydrocarbon and has started providing the discovered fields to private sector companies dealing in petroleum products. This phenomenon offered a scope to the private petroleum industries to expand their business and therefore required the involvement of more number of employees to manage the different departments. The key petroleum industries include Enron Oil and Gas Company and Command Petroleum among others.
Globalization resulted in the inflow of huge foreign direct investments in the various sectors in India that is aiding the growth of different sectors. The textile industry for example, the net worth of which at present is nearly US$ 47 billion, is supposed to touch approximately US$ 115 billion by 2012 and the retail industry which is presently at US$ 6.4 billion is supposed to touch US$ 23 billion by 2010. These developments will further increase job opportunities for the Indian citizens.
The entry of the private sector in the insurance sector has increased job opportunities for the Indian citizens and the entry of the private sector in the insurance industry was a consequence of globalization which worked as an eye opener for the Indian government to follow the examples of foreign countries who have opened their insurance industry to include the private sector as it aided in the growth of the sector by inculcating the spirit of competition between the public sector companies and the private sector companies to expand their client base through better insurance policies. The entry of the private sector in the insurance sector has encouraged the establishment of new insurance companies and expansion of existing insurance companies to maintain their position amidst the severe competition and therefore, are engaged in employing new people to manage the new segments within each company and are also employing new people in the existing departments for the overall growth of the company.
The impact of globalization on employment in India is positive as the globalization process has led to the increase of employment avenues. New industries have entered the Indian economy and have increased employment opportunities for the Indians. The new industries offer wide variety of jobs to the Indian citizens according to their field of specialization. Therefore, the greatest impact of globalization on employment in India is that the phenomenon of brain drain will be reduced to a great extent. Specialists are no longer required to look for the right kind of job outside India as the foreign multinationals in India are offering the same kind of jobs in India.
The impact of globalization on employment in India pervades far and wide as the reforms incorporated since 1991-92 led to the entry of several key international employers in India and also served to open up various employment avenues.
The outsourcing industry has evolved out of the globalization process as the Indian government relaxed restrictions with regard to foreign investments and working of foreign companies in India. The reforms attracted the attention of the key foreign companies towards the vast pool of English-speaking and low- cost workforce in India. Foreign companies from different sectors like banking, information technology, finance, and telecommunication rushed towards India to outsource their work. The ITeS sector offers customer care services as well as back office job for its clients. Customer-care services are divided into 2 categories - technical support jobs and non-technical jobs. Other categories of jobs include accounting, mortgage collections, advisory services for mutual funds, marketing of products including healthcare products, and insurances. IT companies for their part, contribute low cost and highly qualified software developers to the outsourcing industry.
The other industry which was facilitated by globalization is the petrochemical industry as the central government established the Directorate General of Hydrocarbon and has started providing the discovered fields to private sector companies dealing in petroleum products. This phenomenon offered a scope to the private petroleum industries to expand their business and therefore required the involvement of more number of employees to manage the different departments. The key petroleum industries include Enron Oil and Gas Company and Command Petroleum among others.
Globalization resulted in the inflow of huge foreign direct investments in the various sectors in India that is aiding the growth of different sectors. The textile industry for example, the net worth of which at present is nearly US$ 47 billion, is supposed to touch approximately US$ 115 billion by 2012 and the retail industry which is presently at US$ 6.4 billion is supposed to touch US$ 23 billion by 2010. These developments will further increase job opportunities for the Indian citizens.
The entry of the private sector in the insurance sector has increased job opportunities for the Indian citizens and the entry of the private sector in the insurance industry was a consequence of globalization which worked as an eye opener for the Indian government to follow the examples of foreign countries who have opened their insurance industry to include the private sector as it aided in the growth of the sector by inculcating the spirit of competition between the public sector companies and the private sector companies to expand their client base through better insurance policies. The entry of the private sector in the insurance sector has encouraged the establishment of new insurance companies and expansion of existing insurance companies to maintain their position amidst the severe competition and therefore, are engaged in employing new people to manage the new segments within each company and are also employing new people in the existing departments for the overall growth of the company.
The impact of globalization on employment in India is positive as the globalization process has led to the increase of employment avenues. New industries have entered the Indian economy and have increased employment opportunities for the Indians. The new industries offer wide variety of jobs to the Indian citizens according to their field of specialization. Therefore, the greatest impact of globalization on employment in India is that the phenomenon of brain drain will be reduced to a great extent. Specialists are no longer required to look for the right kind of job outside India as the foreign multinationals in India are offering the same kind of jobs in India.