| Topic: GS3 – Indian Economy |
| Context |
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Long Working Hours for Industrial Workers in India
- Many industrial workers in India work 11 to 12 hours daily in garment and auto-component factories.
- During peak production times, workers do not get any breaks for days.
- Outside of work, their time is spent on commuting and household chores.
- Despite this, some corporate leaders in India advocate for even longer working hours.
High Informality in Employment
- The Periodic Labour Force Survey (2023-24) found that only 7% of Indian workers have regular salaried jobs.
- The majority are casual workers or self-employed, with half of the salaried workers lacking formal job contracts, paid leave, or social security benefits.
- Most workers in India already work long hours for low wages without basic protections.
Dependency on Cheap Labour Over Innovation
- Indian industries rely on cheap labour rather than technology and innovation for competitive advantage.
- In developed countries, higher productivity is achieved through superior technology and efficient management, not excessive working hours.
- According to ILO (2024) data, the average weekly working hours were:
- 38 hours in the U.S.
- 6 hours in Japan
- 7 hours in India
Shift from Organised to Unorganised Sector
- Indian industries have shifted production from large, regulated factories to small, unregulated units to avoid labour laws.
- Over 70% of India’s manufacturing workforce (68 million in 2021-22) works in small, unregistered enterprises (less than 10 workers).
- These small units function as part of supply chains for larger firms, producing components used in various industries.
Challenges Faced by Small Firms
- Small firms supplying parts to large firms face delays in receiving payments, causing financial strain.
- They are forced to accept low prices despite rising material costs, leading to a race to the bottom in competition.
- Lack of state support, bank credit, and rising competition from imports has further weakened small businesses.
Increase in Contract-Based Employment
- Factories increasingly hire workers through contractors instead of employing them directly.
- Since 2011-12, 56% of new factory workers are contract workers, who receive lower wages and have no labour law protection.
- Migrant workers, who move from villages to cities, make up a large part of this low-wage workforce.
Declining Wage Growth vs. Rising Corporate Profits
- Migrant workers earn low wages due to social disadvantages and lack of assets or benefits.
- Meanwhile, profits in India’s factory sector rose from 6% in 2019-20 to 46.4% in 2021-22, especially after COVID-19.
India’s Garment Industry Struggles
- Despite abundant cheap labour, India’s garment industry has not performed well globally.
- India’s share in global garment exports has remained stagnant at 1% for two decades.
- Other countries like China, Bangladesh, and Vietnam have outperformed India in garment exports.
- The reluctance of Indian manufacturers to modernize and innovate has held the industry back.
Negative Impact of Cheap Labour Model
- Industries over-relying on cheap labour fail to grow in the long run.
- India’s IT sector and other industries lack innovation because businesses prefer low wages over new technology.
- Low wages reduce workers’ purchasing power, weakening the domestic market and slowing economic growth.
Conclusion
- Overworking employees harms their health and productivity.
- The short-term profits gained through cheap labour will harm industry growth in the long run.
- Indian industry must invest in innovation and technology instead of stretching workers to their limits.
| Practice Question: India’s industrial growth has been overly dependent on cheap labor rather than technological advancement. Discuss the implications of this approach on innovation and economic progress.” (150 Words /10 marks) |
2. Talent shortage — global challenge, India’s opportunity
| Topic: GS3 – Indian Economy |
| Context |
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Future Workforce Challenges and Opportunities
- The global labour market is not fully prepared for the future, as the skills needed in 2030 will be different from those of today.
- A study by FICCI-KPMG estimates a global shortage of over 2 million skilled workers by 2030, leading to $8.45 trillion in unrealized economic potential.
- This shortage presents both a challenge and an opportunity for India to supply skilled workers to global markets.
- India must take proactive steps to ensure its workforce is well-prepared to fill this demand gap.
Key Global Regions with High Workforce Demand
- The Gulf Cooperation Council (GCC), Europe (including the UK), and Australia will have the highest demand for skilled workers.
- Workforce shortages will differ across regions:
- Healthcare will see high demand globally due to aging populations.
- Manufacturing and construction will be crucial for the GCC and Australia.
- Service sector jobs will be the focus for Europe.
- Emerging sectors like automation, AI, big data, predictive analytics, IoT, blockchain, resource efficiency, and sustainability will require skilled professionals.
Barriers to Workforce Mobility
- Regulatory and Immigration Barriers – Complex visa processes and strict work permit regulations hinder migration.
- Recruitment Malpractices and Human Trafficking – Exploitation of migrant workers poses serious threats to their rights and safety.
- Policy Barriers and Skill Mismatches – Many Indian degrees are not recognized globally, particularly in medicine, leading to underemployment.
- Language and Cultural Barriers – Difficulties in adapting to new work environments affect productivity and workforce efficiency.
India’s Efforts to Address the Challenge
- Bilateral Agreements and Free Trade Agreements (FTAs) – Agreements with GCC nations ensure better protection for Indian workers.
- Skill Development Programs – Training programs align Indian workers’ skills with international job market needs.
- Digital Workforce Platforms – Online recruitment systems help protect workers from fraudulent practices, particularly in GCC countries.
Strategies to Maximize India’s Global Workforce Potential
- Sector-Specific Skill Training – Training programs should focus on the needs of specific countries and emerging industries.
- Regulation of Recruitment Practices – Stricter oversight of recruitment agencies is essential to prevent worker exploitation.
- Recognition of Qualifications – International cooperation is needed to ensure Indian degrees are accepted globally.
- Public-Private Partnerships – Collaboration between government and private firms can enhance training programs and employment opportunities.
- Promoting Circular Migration and Mobility – Temporary work visas and rotational workforce models can help address labor shortages without demographic imbalances.
Changing Immigration Policies and India’s Advantage
- Immigration policies worldwide are constantly evolving:
- Europe may impose stricter immigration rules.
- Australia remains more open to skilled migration.
- Despite increasing anti-immigration sentiments in some regions, Indian workers are generally welcomed due to their skills and professionalism.
- Preventing illegal migration will help protect Indian workers from exploitation and improve India’s reputation as a reliable supplier of skilled labor.
Conclusion
- Ensuring a strong presence in the global labor market will support India’s vision of becoming a developed economy.
- Estimates suggest that India’s GDP could reach $6.5 to $9 trillion by 2030.
- India’s ability to move toward the higher end of this projection depends on how effectively it captures a share of the $8.45 trillion global economic opportunity.
| Practice Question: Discuss the challenges and opportunities for India in leveraging its skilled workforce to address the global labour shortage. Suggest policy measures to enhance workforce mobility. (250 Words /15 marks) |
3. A new age of imperialism
| Topic: GS2 – International Relations |
| Context |
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Challenges to the Rules-Based International Order
- The global system that governed relations between countries is under severe strain.
- A major turning point was when a permanent member of the Security Council violated the UN Charter by invading a neighboring country in 2022.
- The international system was built on three key principles: economic integration, collective security, and self-determination.
- The shift in support from a major global power, now echoing the aggressor’s stance, has significantly weakened the UN-based global governance structure.
Formation of the Post-World War II Global System
- After World War II, global powers decided to establish an international organization for collective security and peacekeeping.
- During 1941-1945, major powers agreed to the structure of this system through several conferences.
- In 1943, key global leaders envisioned a world order enforced by four major countries, later expanded to include another power.
- The system aimed to create a rules-based order where all states were treated equally, avoiding an outright victor’s peace.
- However, in reality, spheres of influence were recognized, allowing some powers to dominate certain regions.
- Despite flaws, the system provided predictability in international relations and promoted principles of sovereign equality.
Disruptions to the Global Order
- Recent policy shifts by a global leader have weakened international agreements and disrupted economic cooperation.
- Withdrawal from major global agreements and organizations has undermined established international norms.
- Unilateral trade actions have thrown the global trading system into uncertainty.
- A shift toward nationalist foreign policies and economic interests has further destabilized the system.
Repercussions for Global Security
- A major realignment in global alliances has occurred, with renewed diplomatic ties between two key powers.
- The approach to the ongoing conflict in Eastern Europe has changed, sidelining the affected country in peace negotiations.
- A shift in alliances is forcing European nations to take responsibility for their own security.
- Recent diplomatic discussions resemble past agreements where powerful nations divided influence over different regions.
Impact on Global Power Dynamics
- The shift in global leadership signals a return to might-based diplomacy, rather than rule-based cooperation.
- There are concerns that a new imperialist era may be emerging, with large powers expanding influence.
- The world appears to be dividing into regional spheres of influence, with different powers controlling specific regions.
- A major Asian power, which has supported ongoing conflicts indirectly, now faces fewer restrictions.
Implications for India and Regional Stability
- The security situation in East and Southeast Asia is increasingly uncertain, especially regarding territorial claims.
- A major shift in security commitments from a global power may encourage aggressive actions in the region.
- India must prepare for a more uncertain geopolitical environment, especially concerning longstanding territorial disputes.
- The erosion of the rules-based global order means smaller nations must navigate an unstable and unpredictable international landscape.
| Practice Question: Critically analyze the impact of shifting global alliances on the stability of the rules-based international order. (150 Words /10 marks) |
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