The shift from an agriculture based economy to a manufacturing, technology- and services-based economy displaces the workforce. Supporters of industrialization state that, improvements in process and technology in industrial sector give boon to national economic patterns and global trade. New technology is a creative achievement for industrial sector at the same time it turns destructive for the workforce displaced due to new technology.
India is not an industrial economy though Industrial sector is contributing around 27.6% to the GDP and give employment to 17% of work force. It is associated with a relative shift in the proportion of national income and workforce away from agriculture sector which employs nearly 50% of the total workforce of country.
Agreeably, the modern economy has tremendously benefited many in the educated classes and increased average per capita income in many countries. But the middle and working classes in the developed countries such as India are still struggling, not just economically but also socially.
This “creative destruction” would wipe out many existing jobs especially in developed countries. Theoretically we were assured that it also would create many new jobs but the unearthed part is that only skilled worker would be able to secure better jobs. This also ignores the immeasurable fate of huge population displaced due to collapsing agricultural economy.
Industrialization and Globalization involves a long period of adjustment with no guarantee of the benefits to the masses. Thousands of indigenous manufacturing jobs in India are lost to increased goods trade from China since the start of this century. Typically workers who lose their jobs in one industry should find opportunities elsewhere. Researchers have found that jobs are at risk of being lost due to automation in the next 20 years.
Therefore, an important objective of government research is to assess the relative importance of the factors such as labor legislations, infrastructure problems, protection of household industry, vocational education, etc.