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Resource centre on India's rural distress
 
 

Number theory: Shrinking public sector employment and its costs -Pabitra Chowdhury and Rosa Abraham

-Hindustan Times

As the public sector has contracted, there has been no other good employer that has emerged to take its place despite the economic expansion of manufacturing and services sectors.

Despite several decades of rapid growth of the private sector in India, the allure of a public sector job, historically associated with security, steady pay, and multiple benefits, continues to remain strong for most Indians. The protests following the announcement of the Agnipath scheme for the armed forces, and the uproar around the Bihar railways recruitment issue prior to that have to be seen in this larger context of the aspirations and hopes that have been traditionally placed on public sector employment. This piece highlights how, as the public sector has contracted, there has been no other good employer that has emerged to take its place despite the economic expansion of manufacturing and services sectors. Moreover, public sector employment is an important vehicle for social justice in the labour market (through affirmative action), and the weakening of this sector has consequences for the economic mobility of historically marginalised communities.

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