Impact of Digitalization on Employment Pattern in India

Abstract

Digital enablement has proved to be a game changer all over the world. Earlier the concept of Information and Communication technologies (ICT) was confined mainly to services sector in India, however, with the initiation of Digital India programme in 2015, digitalization has entered in all the walks of human life. Studies round the world depict that digitalization has positive impact on economic growth of a nation by driving entrepreneurial innovation and productivity. Though it has impacted various economic parameters, but the present study will try to analyze its impact on employment in India, with special reference to restructuring of employment and changes in job composition in the aftermath of digitalization. On one hand, it leads to creation of new skilled jobs and on the other hand, it also leads to replacement of routine work and other cyber security risks. Thus, an attempt is made to evaluate the change from the perspective of labor markets and ability of people to adapt to the changing employment pattern in the country and responsibility of education sector to reform according to the changes in required skill sets demanded by the industry. Introduction of digital skill set in higher education curriculum can help in enhancing efficiency and flexibility in labor markets and bridging the digital skill gap in India. The study shows that digitalization has the potential to reduce gender gap in employment and also provide vocational training opportunities to youth which can help in harnessing the benefits of demographic dividend. The Government should aim at reducing digital divide by improving accessibility to internet in both urban and rural areas.