- Migrant industrial workers endure grueling 11-12 hour shifts, often without breaks, with little time beyond work and commuting, highlighting the harsh realities of India’s informal labor sector.
Harsh Working Conditions in Indian Industry
- Many industrial workers in Ludhiana, Punjab, work 11-12 hours daily, often without breaks.
- Most of India’s workforce is informal, with only 21.7% in salaried jobs (2023-24 data).
- Even among salaried workers, 50% face informal conditions (no job contract, paid leave, or social security).
India’s Competitive Advantage: Cheap Labour Over Innovation
- Corporate leaders advocating longer working hours ignore that most workers already endure long shifts.
- Unlike developed nations, where productivity is improved through technology, India relies on cheap labour.
- Average weekly work hours:
- India: 46.7 hours
- U.S.: 38 hours
- Japan: 36.6 hours (ILO, 2024)
Structural Shift Towards Informal Work
- Big businesses shift production from regulated, organised sectors to unregulated, informal ones.
- Small enterprises dominate: 70% of manufacturing workers (68 million in 2021-22) are in units with less than 10 workers.
- Small firms produce components for larger firms but struggle due to delayed payments and lack of support.
Exploitative Labour Practices
- Factory workers increasingly hired through contractors (56% of new factory workers since 2011-12).
- Contract workers lack legal protections and earn lower wages.
- Migrant workers face multiple disadvantages:
- Low wages
- No job security
- No access to social benefits
Rising Corporate Profits at the Cost of Workers
- Factory sector profits surged post-COVID:
- 2019-20: Profit share of value added was 31.6%
- 2021-22: Profit share rose to 46.4%
Lack of Innovation is Hurting Growth
- Over-reliance on cheap labour hinders global competitiveness.
- Garment industry example: Despite a labour surplus, India’s global garment export share has stagnated at 3.1% for two decades.
- China, Bangladesh, and Vietnam have outperformed India due to modernisation and investment in technology.
Negative Impact on Economy & Domestic Market
- Low wages and long hours reduce workers’ purchasing power, depressing domestic demand.
- The focus on short-term profit prevents investment in new technologies and managerial improvements.
- Future threat: Industry will struggle to innovate and grow without improving working conditions.
Conclusion: A Need for Reform
- Exploiting workers for longer hours and lower wages is unsustainable.
- Without investing in better wages, skill development, and modernisation, Indian industry risks stagnation and decline.
A new age of imperialism
Context
- The international order based on economic integration, collective security, and self-determination is weakening.
- The U.S. has shifted from supporting Ukraine to echoing Russia, undermining UN principles.
Origins of the Current World Order
- Established after World War II by the U.S., U.K., and Soviet Union through conferences from 1941-1945.
- Designed to maintain peace through “four policemen” (U.S., U.K., Soviet Union, China), later including France.
- Implicitly accepted spheres of influence (e.g., Soviet control in Eastern Europe).
- Despite flaws, it created a predictable system that promoted self-determination over time.
Trump’s Disruption of the System
- Withdrew the U.S. from international agreements (Paris Agreement, WHO) and disrupted global trade with tariffs.
- U.S. foreign policy has shifted to nationalism, seeking economic dominance and territorial expansion.
Trump’s Shift Towards Russia
- Restored ties with Putin, sidelined Ukraine in peace talks, and accused Zelenskyy of dictatorship.
- Agreed to Russian demands restricting NATO troops in Ukraine, shocking Europe.
- Europe now faces the challenge of self-managing security after relying on U.S. support.
Emerging New Spheres of Influence
- The U.S. is withdrawing from global leadership, focusing on its own hemisphere.
- Trump’s policies mirror an imperialist approach, reminiscent of historical power struggles.
- Russia gains influence over Europe, while China is emboldened to act on Taiwan.
Security Concerns for India
- China, having backed Russia, may become more aggressive regarding Taiwan.
- The U.S. retreat increases risks for India, as China has never accepted the McMahon Line.
- Global instability poses new security challenges for India and the broader world.