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Challenges of India's Labor Market UPSC NOTE

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  Working Conditions of Migrant Workers Migrant workers in Ludhiana work 11-12 hours a day in factories , often without breaks when demand i...

 Working Conditions of Migrant Workers

  • Migrant workers in Ludhiana work 11-12 hours a day in factories, often without breaks when demand is high.

  • Their free time is mostly spent on cooking and commuting, leaving little time for rest or personal activities.

  • Workers in informal sectors are largely ignored in debates about working hours, as most of India’s workforce is in this category.

India’s Informal Labor Market

  • Only 21.7% of Indian workers hold regular salaried jobs as per Periodic Labour Force Survey, while the rest are casual or self-employed workers.

  • Many regular workers in India face informal conditions: no contracts, no paid leave, and no social security benefits.

  • The shift from organized to unorganized sectors has led to poor working conditions for the majority of Indian workers.

India's Dependence on Cheap Labor

  • Indian industry competes globally using cheap labor rather than innovation or technology.

  • This reliance on long hours and low wages keeps industries from advancing and improving productivity.

  • In developed countries, industries focus on efficiency through technology, while India still depends on low-cost, long-hour workers.

  • Indian capitalists prefer cheap labor, and the shift to smaller, unregulated firms has worsened conditions.

Consequences for Growth and Innovation

  • The garment industry, despite India’s large labor force, has stagnated with only a 3.1% share of global exports.

  • The lack of modernization and capital investment limits growth in industries like garments and IT.

  • Low wages and long hours reduce workers' purchasing power, weakening the domestic market and stalling industry growth.

  • Without technological and managerial improvements, India’s industries are trapped in a cycle of low wages and stagnant progress.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Challenges of India's Labor Market UPSC NOTE
Challenges of India's Labor Market UPSC NOTE
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Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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