Contemporary India - Part 2
Posted by adminThe rich and poor
The BJP-led National Democratic Alliance (NDA) was trounced in the 2004 general election, as the majority of people could see no truth in its “India Shining” slogan; giving some hope for a change in direction from the new Congress-led, and Left Front-supported, United Progressive Alliance. “India Shining”, however, was firmly aimed at India’s middle and upper classes, for whom a huge increase in consumer debt has fuelled an equally large orgy of spending, on anything from mobile phones to the latest foreign car.
However, such riches, apparent on any trip to one of the large “metros” (Delhi, Mumbai, Kolkata and Chennai), are available to only the 10 percent of the population that comprises the Indian urban middle class. What, then, about the other 90 percent? Life for them, it seems, might not be so rosy. Since 1991, the country has undergone huge economic change, and the adoption of neo-liberal policies, and while this has given a huge boost to the 300 million who count themselves as the Indian middle class, conditions for the vast majority have not improved, and in many cases have become much worse.
Economic reform got off to a shaky start. It was supposed to bring much-needed jobs to India but unemployment has risen, from 9.2 percent in 2000 to 10.1 percent in 2004. The loss of jobs has also affected the non-agricultural sector, which includes the area celebrated by many as India’s savior: the IT and service industries. The service industry accounts for around 51 percent of jobs, much of it extremely badly paid. The country has attracted much business process outsourcing (BPO) by Western companies, which has benefited the middle class, though the work itself is not highly skilled, and most of its operators are vastly overqualified. India exports $25 billion a year of these services, though there have already been reports of companies relocating from India to places such as Ghana where the workforce is even cheaper. In any case, it has been argued that such work merely diverts the best-educated workers into servicing US and European bank and utility accounts rather than into more productive employment - in essence, an internal brain drain.
At the same time, the employment figures mask the true scale of the problem. Only 61 percent of the adult population (between 15 and 65 years old) are seeking employment, and of those who do actually find work, most will be underemployed. Just to satisfy the middle class alone it is estimated that at least 10 million well paid jobs a year need to be created.
