Indian Labour in Confusion - Employability Vs Technology

The Indian labour market is in a complex web of increasing employability and matching pace with rapidly evolving technology. After overtaking China in 2022 to become the most populous country in the world, India continues to struggle to provide its labour with the skilled expertise and capacity-building abilities necessary for keeping up with advanced technology.

Illustration by The Geostrata

On the same path, China has significantly progressed in terms of providing labour-oriented employment opportunities by leveraging the present model.

CHANGING SECTORAL DYNAMICS IN INDIA

The Indian economy has witnessed a drastic change in its sectoral composition since independence. Formerly, the agricultural sector used to be the dominating absorber of the masses, but the paradigms have been shifted to the industrial and service sectors. The Green Revolution brought in a major transformation in the primary sector but failed to reap an equitable distribution of the benefits. Productivity was boosted, yet there was no noteworthy impact on the employment vertical.

The Liberalization-Privatization-Globalization [LPG] reforms in 1991 opened doors for the Indian economy to attract foreign investments and diversify the industries.

This, too, was not sufficient to cope with the exponentially increasing Indian labour population, as underemployment and job insecurity remained a major challenge.

CHINA'S STRATEGIC LABOUR REFORMS

China, on the other hand, was achieving the milestones of labour by strengthening its industrial base. Two-fold economic reforms included reversing the collectivisation of agriculture and opening up foreign investments along with privatization and protectionist policies. The outlook of labour had drastically changed; vocational training and skilful knowledge were imparted to make the education system holistic and job-oriented, consequently resulting in mass employability.

LABOUR DILEMMAS: INDIA'S CONFLICTING PRIORITIES

Indian labour is experiencing a dilemma between prioritizing labour-intensive techniques or a technology-driven economy. The textile and agricultural sectors are crucial for absorbing unskilled and semi-skilled labourers.

Meanwhile, these sectors are now facing massive exploitation, low productivity and wages, and disguised unemployment. Contrastingly, tech-based spaces like the IT industry and telecommunications offer a plethora of opportunities, with high wages, job security and contributing to the national income as well. The technology-driven services require highly technical and skilled manpower, challenging the know-how that the Indian labour force exhibits.

CHINA'S COMPETITIVE EDGE: VOCATIONAL TRAINING AND TECH ADOPTION

The Chinese labour market post-reforms, has been identified for the extensively trained workers, industrial sound base, and educational and technological investments complementing each other’s growth. The dragon always had an edge over India when it came to training & development of labour and adoption of evolving dynamics of technology.

The strategic policy changes have played a vital role in sustaining China’s standout in global competition e.g. The Made in China 2025 initiative drives to adapt the Chinese industries with upcoming innovations.

Similarly, the Indian government has also taken substantial steps forward to enhance the employability of labour, Skill India and Startup India are two of them. These schemes are broadly initiated to build a skilled labour force, promote entrepreneurship and attract foreign investments. 

The Chinese model serves as a benchmark for the Indian marketplace, but it also poses certain critical setbacks due to the differences in labour composition and demographics. The degree of government involvement and control is very different in both countries, which is a key factor for defining the prospects of any economy.

To copy the Chinese model, India needs to address the structural variations of the socio-economic sphere. The rigorous policy implementation and authoritative approach have contributed to the successful outcomes of the measures adopted by the dragon. 

STRUCTURAL DIFFERENCE: INDIA VS CHINA

In the Indian landscape, political instability and regional disparity have resulted in slow growth and inefficient management of employment opportunities. The one-party norm in China assists the sustainable planning process and constant vigil on its proper implementation, without the barriers of repeated elections in short periods.

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The electoral system in India can result in changing the political framework, which often diverges the policy objectives and brings latency in the execution process, i.e. different governments-different priorities.

RECOMMENDATIONS: HYBRID SKILL DEVELOPMENT SIMULATION

Considering the current state of confusion in the Indian labour market, transformative measure is needed to synchronize the employment aspirations of the humongous population, connected with technology.

A “Hybrid Skill Development Simulation” can be practised to deliver a technology-adaptable workforce. Motivated by the dual-education framework of Germany; It equips education students with practical knowledge, making the students job-ready right after graduating.

1. Technology-based Vocational coursework; The vocational courses must give students a hands-on experience with modern innovations and techniques like automation. It will facilitate a smooth transition from conventional methods to the latest technology.

2. Public Private Partnerships [PPPs]; A multi-functional collaboration of private institutions and government training centers will potentially help this movement. The inculcation of industrial research into the curriculum can make the labour equipped with marketable skills to seek internship programs of the government.

3. Online learning; Top academic bodies can provide online lectures for a wider student coverage. This initiative will not only be helpful for underprivileged individuals but will also cater to a particular qualification one wants to specialize and excel. 

4. Soft skill and Entrepreneurship conducive; The hybrid skill development simulation will significantly aim to build soft skills and foster the spirit of entrepreneurship. This will encourage youth brains to opt for startups and become employment providers. 

A BALANCED APPROACH FOR INDIA

The introduction of AI has brought a basket of both opportunities and threats. Industry 4.0 utilizes the capabilities of AI to expand smart production and leverage the benefits of the digital landscape. On the other hand, the gradual penetration of automation is posing an insecurity to unskilled and less-skilled workers.

Developing nations like India must increase their investment expenditure in infrastructure and growth of human resources, to develop a skilful labour market for the future.

In conclusion, the Indian labour market needs the immediate attention of policymakers. The mismatch of educational qualifications and skills needs to be bridged by proper guidance for budding job seekers. India can learn from the Chinese model and develop a comprehensive strategy of its own. A balanced vision for economic resilience will be recommended for ensuring sustainable development. Keeping in consideration other concerns of national priority, a closer look at the insights of the dragon will ease up the employment revolution in India.

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BY AKUL

TEAM GEOSTRATA

info@geostrata.com