The dangers that lurk beneath India’s IT layoffs

Prof Maitreesh Ghatak just nails it:

You can spin a web of statistics and say all izz well when people are hurting. You can use catchy phrases like ‘the digital economy’ and ‘Make in India’ to raise aspirations of global domination, or blame it all on past government policy. The problem, though, is that you can only do it for so long without actually delivering on job creation.
The Sensex can hit the skies, our growth figures can beat China’s, and it may keep those whose fortunes are tied to either our protected corporate sector or the bloated public sector happy and willing to wait for achche din.
However, these are not meaningful indicators of economic development unless accompanied by the creation of jobs, and rising wages and salaries enabling ordinary citizens to enjoy a better quality of life. Being laid off or struggling to find jobs while being told of wonderful times to come or that unemployment is a choice tends to make people very upset.
And even though they command a small fraction of wealth or income in our highly unequal economy, they have strength in numbers. They can vote. And at some point, may be a few years down the line, they may well choose to make some politicians and their economic advisers voluntarily unemployed.
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One Response to “The dangers that lurk beneath India’s IT layoffs”

  1. Anantha Nageswaran Says:

    The comments of Prof. Ghatak that you had highlighted are needlessly provocative and partisan. That takes away from whatever scholarship that might have been there in the rest of the piece.

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