Liberalization: Led to Unemployment in India?

Though liberalization is not the sole reason for unemployment in India, it is proving to be the main reason. India has a history of fighting against liberalization and foreign intervention on it's economy. But in 1991, the government decided to start liberalization. The country's position would have been at the top if only the government has fulfilled major social objectives before satellite channels.

This liberalization is started with aggression rather than with a perfect plan and implementation. Nothing is useful unless it serves the people's needs. What is the need of foreign trading if it is not serving the people? One should look at what one gains in any economic trade. This is the major factor of the terms of trade. This is the reason for cheap selling of Indian goods in other countries while their goods are bought at higher prices in India.

With the implementation of liberalization, the rupee started losing it's value. Added to this India's Terms of trade started to decrease enormously. This devaluation of rupee increased the import costs while decreasing the export costs.
This started destroying the economic field which obviously resulted in increased unemployment.

In the last decade, thousands of working people lost their jobs and students are demanding changes in government policies so that they could get employment when they finish their studies. The growth in unemployment is clearly visible through the statistical data. This unemployment is seen in every field of work like mining, manufacturing, and electricity fields.

In a developing country, the public sector has an important role. But, because of the liberalization, the employment opportunities started decreasing for the public sector. Though many international moneylenders promised more foreign investment to India before liberalization, many of them failed to stick to their word. Since liberalization brought down the value of rupee, these companies declared India as bankrupt and stepped away from their word.

This bought fighting spirit in many workers and non workers showing a gradual decrease in the number of industrial disputes and the number of non working days. This bought respect to labor laws and every political party is taking necessary steps not to take any step which agitates labor laws.

The efficiency, productivity, and commitment of the workers in India is showing a slight increase in employment from the past five years. Many national companies started in past decade and they succeeded in making their name in international market.

Though liberalization gave a major blow to India in the field of employment, the country is recovering from it and is compensating the loss occurred. Soon we may expect India to emerge as one of the powerful nations.