Impact of globalisation on economic growth and employment in India with special reference to Kerala

Abstract

Focusing on the linkage between globalisation and its impact on employment and development Bhalla (2008) mentioned that advent of globalization may result in increased displacement of unskilled or low skilled labour as demand would be more high-skilled centric. Considering it, in this paper, using secondary level data, we have tried to assess the impact of globalisation on economic growth and employment in India with special reference to Kerala. Our data analysis revealed that globalisation had a positive impact on economic growth but the effect on employment is a mixed one. From 1993 to 2000, 24.18 million jobs were added. According to Bhalla (2008) the number of unemployed in India rose from 3.98 million in 1973–74 to 9.15 by 1999–00 and further to 11.21 million by 2004–05. Against this backdrop, we have made an assessment of employment in most literate state of the country viz. Kerala. Data depicted that unemployment levels are highest in Kerala and its prime reason being lack in skills. Kerala has shown a very dismissal picture in terms of higher education enrolment which can be treated as a proxy for skill-based education. As per NSSO 68th around Kerala has only 21% persons enrolled in higher education in 2011. Another reason for high unemployment rates is low participation of females and lack of skill-based education among them. Thus, the study concludes that skill and employability of Indian labour force is quite low and therefore globalisation has proved not been very rewarding. Globalisation and free trade enables countries especially developing ones to utilise their abundant labour and increase flow of trade but this can be done only when labour force is well equipped to compete with world. In order to reap the benefits of globalisation, the study suggests expansion of higher education, reduction in gender disparities in education and promotion of skill development programmes.