Which of the following are direct consequences of globalisation and liberalisation?
(A) Air India sold to TATA.
(B) New land acquisition policy of the government to invite foreign investors.
(C) Outsourcing and contractual employment.
(D) Displacement of the service caste groups.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B) and (C) only
(A) Air India sold to TATA. Correct. Selling a government-owned company to a private company is privatisation. Under liberalisation the government is trying to sell its share in several public sector companies, a process known as disinvestment; the sale of the national airline to a private group is a case of it.
(B) New land acquisition policy of the government to invite foreign investors. Correct. Liberalisation encourages private and foreign firms to invest in India, and alongside it the government is embarking on a policy of land acquisition for industry, which makes land available for the new industries.
(C) Outsourcing and contractual employment. Correct. More and more companies are reducing permanent employees and outsourcing their work to smaller companies or even to homes. For multinational companies this outsourcing is done across the globe, with countries like India providing cheap labour, and contract labour is rising.
(D) Displacement of the service caste groups. Incorrect. The service caste groups were displaced by the machinery of the Green Revolution: tillers, tractors, threshers and harvesters in Punjab and parts of Madhya Pradesh took over the farm work they used to do. It was a result of agricultural modernisation, not of globalisation and liberalisation.
NCERT (2025-26): “Globalisation, Liberalisation and Changes in Indian Industry … The government is trying to sell its share in several public sector companies, a process which is known as disinvestment. Many government workers are scared that after disinvestment, they will lose their jobs. In ‘Modern Foods’, which was set up by the government to make healthy bread available at cheap prices, and which was the first company to be privatised, 60% of the workers were forced to retire in the first five years. More and more companies are reducing the number of permanent employees and outsourcing their work to smaller companies or even to homes. For multinational companies, this outsourcing is done across the globe, with developing countries like India providing cheap labour. Because small companies have to compete for orders from the big companies, they keep wages low, and working conditions are often poor. It is more difficult for trade unions to organise in smaller firms. Almost all companies, even government ones, now practice some form of outsourcing and contracting. But the trend is especially visible in the private sector.…” “Globalisation, Liberalisation and Changes in Indian Industry … At the same time as secure employment in large industry is declining, the government is embarking on a policy of land acquisition for industry.…” “Social Change and Development in India — Chapter 4, 4.3 The Green Revolution and its Social Consequences: … In addition, the introduction of machinery such as tillers, tractors, threshers, and harvesters (in areas such as Punjab and parts of Madhya Pradesh) led to the displacement of the service caste groups who used to carry out these agriculture-related activities. This process of displacement also increased the pace of rural-urban migration.…” |