Impact of economic or political developments on Indian employees

Last updated :
March 10, 2024
/

minutes read

Table of Contents

Introduction

Understanding the impact of economic or political developments on Indian employees is crucial in today's ever-changing world.

With the economic and political landscape constantly evolving, it is important to recognize how these developments affect the lives and livelihoods of Indian employees.

From economic growth and recession to government policies and social media, various factors influence the job opportunities, job security, and work culture of Indian employees.

In this article, we will delve into the positive and negative impacts of economic and political developments on Indian employees and explore the needs and wants of young Indian employees and new graduates.

Economic Developments and Indian Employees

Effects of Economic Growth on Indian Employees

  • Positive impact: Economic growth creates more job opportunities for Indian employees across various sectors. For instance, the IT sector in India has seen a significant boom in the past two decades, which has created ample job opportunities for young and skilled professionals.
  • Negative impact: The downside of economic growth is that it often leads to inflation, which impacts the purchasing power of employees, especially those with low wages. Additionally, the growth of certain sectors may also lead to the loss of traditional jobs and the displacement of workers.

According to a survey by PwC, India is expected to become the world's fifth-largest economy by 2025, creating even more job opportunities.

Impact of Economic Recession on Indian Employees

  • Positive impact: Economic recessions often lead to an increased focus on innovation and efficiency, which can benefit employees in the long run. In the case of the global recession of 2008, many Indian companies focused on cost-cutting measures and increased productivity, which led to better job security for employees in the long term.
  • Negative impact: Economic recessions often lead to job losses, lower salaries, and reduced benefits for employees. The most recent example of this is the COVID-19 pandemic, which has impacted several sectors of the Indian economy and led to job losses and reduced income for millions of employees.

During the COVID-19 pandemic, millions of Indian employees lost their jobs due to the economic downturn.

The unemployment rate in India reached a record high of 7.1% in December 2020, according to the Centre for Monitoring Indian Economy (CMIE).

Role of Globalization in Shaping Job Opportunities for Indian Employees

  • Positive impact: Globalization has opened up new job opportunities for Indian employees in sectors like IT, BPO, KPO, healthcare, and finance.The Indian IT industry generates over $150 billion in revenue and employs over 4 million people, according to NASSCOM.
  • Indian professionals have been able to take advantage of globalization to find work opportunities across the world, including in the US, UK, and other countries.
  • Negative impact: Globalization has also led to the loss of traditional jobs in certain sectors, such as manufacturing, and has created greater competition for workers. Additionally, the global economic downturn in 2008 impacted Indian exports and the economy, which had a negative impact on the job market.

Importance of Skilling and Upskilling in the Context of Economic Development

  • Positive impact: The demand for skilled professionals has increased significantly in recent years, which has led to greater opportunities for employees who are willing to learn new skills and upskill themselves.
  • The Indian government has launched several skilling initiatives to train and upskill workers in various sectors.
  • According to a report by the World Economic Forum, by 2025, 50% of all employees will need reskilling.
  • Negative impact: The pace of technological advancements has led to a skills gap between what employers are looking for and what employees possess. This gap has led to higher levels of unemployment and underemployment among the Indian workforce.

III. Political Developments and Indian Employees

The political developments in India can have a profound impact on the job market and work-life of Indian employees. Here are some of the ways in which political developments can affect Indian employees:

Influence of Government Policies on Indian Employees

  • Government policies can have a direct impact on the employment scenario in the country. Policies related to taxation, trade, and investment can affect overall economic growth and job creation.
  • For example, the "Make in India" campaign launched by the Indian government in 2014 aimed to promote domestic manufacturing and attract foreign investment. This policy initiative led to the creation of new jobs in the manufacturing sector, thereby benefiting Indian employees.
  • Government policies like Skill India, Startup India, and Make in India have created new job opportunities and encouraged entrepreneurship among young Indian employees.
  • Government policies like demonetization and the Goods and Services Tax (GST) have led to job losses and impacted small businesses and entrepreneurs.
  • Government policies such as taxation, trade agreements, and investment incentives can have a significant impact on the job market and wages of Indian employees.
  • The introduction of the Goods and Services Tax (GST) in 2017 has led to changes in the tax structure, affecting businesses and job opportunities.

Changes in Labor Laws and their Impact on Indian Employees

  • Changes in labor laws can affect the job security, wages, and working conditions of Indian employees.
  • The government's recent labor reforms, such as the Industrial Relations Code and the Occupational Safety, Health, and Working Conditions Code, have been met with mixed reactions from labor unions and industry experts.
  • The new codes aim to simplify and consolidate the existing labor laws and provide more flexibility to employers.
  • Changes in labor laws can have a significant impact on the job security and working conditions of Indian employees.
  • For example, the recently passed Industrial Relations Code, of 2020, aims to streamline the labor laws in India and provide greater flexibility to employers in hiring and firing employees. While this could lead to a more dynamic job market, it could also lead to increased job insecurity for Indian employees

Political Instability and its Impact on Job Security of Indian Employees

  • Political instability can lead to uncertainty in the job market and affect the job security of Indian employees. The recent protests by farmers against the government's agricultural reforms have led to concerns about the impact on the rural job market.
  • Political instability can also affect foreign investment in the country, leading to job losses in the affected sectors.
  • Political instability can cause a lot of uncertainty in the job market and impact the job security of Indian employees.
  • For example, the ongoing farmers' protests in India have led to disruptions in transportation and supply chains, causing job losses in sectors such as logistics and retail.
  • Additionally, the protests have led to a sense of uncertainty in the business community, leading to a reduction in investments and job opportunities.

The Role of Social Media in Shaping Political Discourse and its Impact on Indian Employees

  • Social media has become a powerful tool for shaping public opinion and influencing political decisions.
  • The spread of fake news and misinformation on social media can have a negative impact on the job market and economic stability.
  • The recent controversy over the suspension of Twitter accounts of journalists and activists has led to concerns about the impact on free speech and political discourse in the country.
  • Social media has emerged as a powerful tool for political discourse in India. However, it can also have a negative impact on Indian employees.
  • For example, the circulation of fake news and propaganda on social media can create a sense of fear and uncertainty among Indian employees, leading to a decline in productivity and mental health issues.

IV. Needs and Wants of Young Indian Employees and New Graduates

Expectations of Young Indian Employees from Their Workplaces

Young Indian employees are looking for more than just a paycheck from their workplaces. They want to work for a company that aligns with their values, provides a positive work environment, and offers opportunities for growth and advancement. Some of the specific expectations that young Indian employees have from their workplaces are:

  • Meaningful work: Young Indian employees want to work on projects that are challenging, meaningful, and align with their personal values. They want to feel like they are making a difference and contributing to society.
  • Career growth opportunities: Young Indian employees are looking for jobs that provide opportunities for career growth and advancement. They want to learn new skills, take on new responsibilities, and be promoted based on merit.
  • Work-life balance: Young Indian employees value their personal time and want to work for companies that respect their work-life balance. They want to be able to take time off for personal reasons and have flexible work arrangements such as work-from-home options.
  • Diversity and inclusion: Young Indian employees value diversity and inclusion in the workplace. They want to work for companies that promote diversity and have a culture of inclusivity.
  • Competitive compensation: While young Indian employees value more than just compensation, they still expect fair and competitive compensation for their work. They want to feel that they are being fairly compensated for their skills and contributions.

Importance of Work-Life Balance and Flexible Work Arrangements

  • Young Indian employees value work-life balance and flexibility in their work arrangements.
  • According to a survey by LinkedIn, 92% of Indian professionals believe that work-life balance is important, and 70% of Indian professionals prefer flexible work arrangements such as work from home or flexible hours.
  • They want to work for companies that value their personal time and allow them to maintain a healthy work-life balance.
  • Flexible work arrangements not only improve work-life balance but also reduce stress, increase productivity, and improve employee retention rates.

Impact of Work Culture on Employee Satisfaction and Productivity

  • The work culture of an organization can have a significant impact on employee satisfaction and productivity.
  • A positive work culture that promotes teamwork, open communication, and a healthy work-life balance can improve employee morale, reduce turnover rates, and increase productivity.
  • On the other hand, a toxic work culture that promotes cutthroat competition, micromanagement, and unreasonable demands can lead to burnout, high turnover rates, and decreased productivity.

According to a survey by Glassdoor, positive work culture was the most important factor influencing the decision to accept a job offer for 77% of Indian professionals.

The Role of Technology in Shaping the Expectations of Young Indian Employees

Technology is shaping the expectations of young Indian employees in many ways. The widespread use of technology in the workplace has led to an expectation of instant gratification and real-time feedback.

Young Indian employees are also expecting companies to provide them with the latest technology tools and equipment to perform their jobs efficiently. Additionally, the use of social media and online reviews has made it easier for young Indian employees to research potential employers and learn about their work culture and reputation.

As a result, companies need to be aware of the impact of technology on the expectations of young Indian employees and adapt their policies accordingly.

With the rise of the gig economy and remote work, young Indian employees are increasingly looking for job opportunities that provide them with the flexibility to work from anywhere and at any time. Additionally, young Indian employees expect their workplaces to be digitally savvy and provide them with access to the latest technology and tools.

Conclusion:

Economic and political developments have a significant impact on the lives and careers of Indian employees. Economic growth can create job opportunities and boost employee morale, while economic recessions can lead to job losses and financial stress.

Government policies, labor laws, and political instability can also affect job security and work culture. It is essential for employers to understand the needs and wants of young Indian employees, such as work-life balance, flexible work arrangements, and the role of technology.

Overall, by recognizing the impact of economic and political developments and meeting the needs of their employees, employers can create a more productive and satisfied workforce.

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