Class 11 Economics - Indian Economic Development - Chapter Indian Economy 1950-1990 NCERT Solutions | Does modernisation as a planning objecti
Does modernisation as a planning objective create contradiction in the light of employment generation? Explain.
No, modernisation as a planning objective does not contradict employment generation. In fact both modernisation and employment generation are positively correlated. While modernisation refers to the use of new and modern technology in the production process that may make some people lose their jobs in the initial stages. But gradually, the use of modern technology and input will raise the productivity and, consequently, the income of the people that will further raise the demand for goods and services. In order to fulfill this increased demand, there will be more job opportunities that will lead more people to be hired and, hence, more employment opportunities will be generated. Hence, both modernisation and employment generation are not contradictory but are complementary to each other.
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6. Subsidy
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