India was a cheap country, where a common man could feed his family with a mere $ 3 income per day. But the situations are changing today with the onset of globalization. India has been put on global IT map as the cheap, software developing, English speaking country. Due to our economy and low operating cost, we could get the jobs outsourced to India.
Now as the software industry is growing, bringing more and more people into IT industry with more IT jobs to India, the economy has started growing. With this, starts the need for more man-power recruitment. Fresh engineers are being recruited on a large scale with high salary. There are companies looking for skilled professionals, so these people change the jobs for high income and in turn create a huge vacuum for new professionals. This started a rat race; attrition rate increased and the companies have to pay more to retain the people. This in turn makes India loose the cost Advantage over the other countries in near future.
The growing scale of highly salaried people has taken the living cost in India to a new high level. These are the fruits of globalization that people are spending more as they are earning more. But the question is, are we all 100 crore Indians part of this globalization? Are we all enjoying the fruits of globalization? No!
Poor sections of society are becoming poorer as the earnings to the cost of living ratio is decreasing eventually. IT boom helped professional to buy the apartments, causing the real estate industry grow at high pace and today one has to pay thrice for the same apartment which used to cost before one year. But here this brunt has to be bared by non-IT people too.
Inflation rate is at its all-time peak and the competition to survive is like "fittest of survival". The one who is fit economically and also growing at a high rate financially can only sustain this competition. Rest all, who think are well settled, should know that the financial leaking hole is becoming larger and larger, day-by-day.
Now as the software industry is growing, bringing more and more people into IT industry with more IT jobs to India, the economy has started growing. With this, starts the need for more man-power recruitment. Fresh engineers are being recruited on a large scale with high salary. There are companies looking for skilled professionals, so these people change the jobs for high income and in turn create a huge vacuum for new professionals. This started a rat race; attrition rate increased and the companies have to pay more to retain the people. This in turn makes India loose the cost Advantage over the other countries in near future.
The growing scale of highly salaried people has taken the living cost in India to a new high level. These are the fruits of globalization that people are spending more as they are earning more. But the question is, are we all 100 crore Indians part of this globalization? Are we all enjoying the fruits of globalization? No!
Poor sections of society are becoming poorer as the earnings to the cost of living ratio is decreasing eventually. IT boom helped professional to buy the apartments, causing the real estate industry grow at high pace and today one has to pay thrice for the same apartment which used to cost before one year. But here this brunt has to be bared by non-IT people too.
Inflation rate is at its all-time peak and the competition to survive is like "fittest of survival". The one who is fit economically and also growing at a high rate financially can only sustain this competition. Rest all, who think are well settled, should know that the financial leaking hole is becoming larger and larger, day-by-day.
3 comments:
I partially agree with what you think. Especially in terms of increase in inflation etc. At the same time I understand this is a transitional problem which every growing country will face. Economic forecast by IMF and WorldBank says that Indian economy will stabilize inflation in next few years with growth rate decreasing by a small margin.
I don't see poor people becoming poorer, as money flow from IT demographic segment is equally filling the pockets of poor (not by ration ways).
Survival of fittest is pure capitalism, which India can't be in couple of decades yet, but believe me that situation would be win win for everyone.
Survival of fittest can never be a win win situation for everyone, because only the fittest survives.
And yes I believe that there is always a trade off between inflation rate and economic growth.
I too hope that the fruits of globalization will reach all sections of India.
@Nirav,
Because of globalization only, Lakshmi Mittal is the richest man in Europe and ironically a common man has to pay three times the EMI for same apartment, what he would have been paying 2 years back. But his earnings is not the 3 times. So there is a loop hole and there is an unequality.
Thanks Nirav.
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