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The IT industry, employment and informality in India: Challenging the conventional narrative

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  • Tom Barnes

Abstract

The IT industry has been portrayed as instrumental to India’s transition to a high-growth economy. But critics argue that it has delivered few benefits to the wider population. In this context, industry advocates have drawn attention to the direct and indirect impact of IT on output and employment. This article critically explores these claims by locating them in the conventional (neoliberal) narrative of India’s recent economic development. It finds that industry claims are exaggerated and that IT industry demand is often linked to the creation of employment in industries dominated by informal employment arrangements. The prevalence of informal employment highlights problems of low pay and poor or hazardous working conditions. The IT industry’s rise to prominence has traversed a deeply ingrained process of labour market informalisation. In exaggerating the employment-generating capacity of the IT industry, its supporters have largely ignored problems relating to the quality of employment.

Suggested Citation

  • Tom Barnes, 2015. "The IT industry, employment and informality in India: Challenging the conventional narrative," The Economic and Labour Relations Review, , vol. 26(1), pages 82-99, March.
    • Handle: RePEc:sae:ecolab:v:26:y:2015:i:1:p:82-99
    DOI: 10.1177/1035304614567261
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    References listed on IDEAS

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    Cited by:

    1. Tom Barnes & Joshua M Roose & Lisa Heap & Bryan S Turner, 2016. "Employment, spillovers and ‘decent work’: Challenging the Productivity Commission’s auto industry narrative," The Economic and Labour Relations Review, , vol. 27(2), pages 215-230, June.

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    More about this item

    Keywords

    India; informal economy; input–output methodology; IT industry; neoliberalism;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

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