It is known that only a small percent of India’s employment is generated by what is known as the public sector. Organised labour unions, associations and interest groups represent even a smaller fraction of this. Yet, the system sees the condition of labour through the prism of this section of society. Almost all the MPs supposedly representing India’s working class belong to this class. It is no wonder then that the labour policies of governments in the past have been shaped by and skewed in favour of this minority, which is why there has never been any substantial labour reform in the country. The majority of workers have remained unrepresented, with almost no support or protection from the labour departments of any government at the Centre or the states. The established mindset is revealed by the scornful reaction of many intellectuals to the PM’s mention of ‘pakora walas’ in the context of employment.
Such is the disconnect between actions and outcomes for this class that it remains determinedly attached to the teat that it has fed from for so long, irrespective of what is happening around it. The ‘nationalisation’ mindset had for long distorted the economy by functioning entirely against the principles of good business.
Generating employment and using the labour force productively is one of the major problems facing India. This can only be done if the government obtains real data on the way the economy is structured. Tracking where the money flows is essential, which requires elimination of black money and corruption in government departments. There are entire states that are avoided by entrepreneurs merely because nothing can get done without greasing hands. It does not matter why the ED raids a politician’s home – it almost invariably recovers illegally acquired wealth.
Unfortunately, despite all the efforts at reform, the socialist mindset is making a serious comeback bid. The growing middle-class and emerging working class need to be wary of this threat. There have to be better regulations and increased competition, both, within the country and internationally, to increase wealth and opportunities. There is a level of skill, which when attained, opens the path to becoming an ‘entrepreneur’. Under no circumstances is such a person required to remain classified as a ‘worker’ for policy formulation.
Intelligently done, investing in the big companies is profitable. However, it is also important to ‘invest’ in the local business environment, by patronising emerging enterprises, even if it is a small shop opened by an aspiring housewife. It helps raise the tide that sets afloat a large number of boats.
