Overview of India’s IT Sector
India’s IT industry contributes over 7% to the GDP, becoming a global benchmark, especially for software exports.
High-paying and performance-driven jobs make it a preferred sector for Indian youth.
Often regarded as a model of skill-based meritocracy, where candidates’ social backgrounds supposedly do not impact hiring.
Findings from NSSO Data Analysis
Scheduled Castes (SC) and Scheduled Tribes (ST) have only a 10% probability of being employed in IT compared to 27% for upper castes.
The gap has widened from 2011-12 to 2020-21 despite an overall increase in IT employment for all groups.
2011-12: 6% probability for SC/ST vs. 17% for upper castes (deficit of 11%).
2020-21: 10% probability for SC/ST vs. 27% for upper castes (deficit of 17%).
SC workers earn 24.9% less, and Other Backward Classes (OBCs) earn 22.5% less than upper-caste workers, despite similar education and employment types.
Women in IT earn 26.2% less than men, regardless of caste.
Implications of Labour Market Segmentation
Lower castes face significant challenges in upward mobility and lower returns on educational investments.
Segmentation limits economic efficiency and social justice.
Impact on Women: Gender-based wage gaps further deepen inequities in the sector.
Importance of Workplace Diversity
Economic Benefits: Studies show workplace diversity enhances productivity and innovation:
For example, a 1% increase in racial diversity correlates with productivity gains of $729–$1,590 per worker annually (Network for Business Sustainability, Canada).
Missed Opportunities: The Indian IT sector’s hesitance to embrace diversity risks long-term sustainable growth and discourages marginalised groups from pursuing skill development.
Policy Recommendations
Transparency in Workforce Diversity:
Mandate companies to publicly disclose their workforce diversity matrix on their websites to ensure accountability and encourage inclusivity.
Incentives for Marginalised Entrepreneurs:
Provide training and incentives to boost entrepreneurship among lower-caste groups in high-productivity sectors.
Bridging Skill Gaps:
Implement initiatives to equip marginalised sections with relevant skills, fostering equitable participation in the job market.
Conclusion
Addressing caste and gender disparities in the IT sector is crucial for creating an inclusive, meritocratic workforce that not only drives economic growth but also promotes social equity.
Without deliberate efforts, the sector risks perpetuating structural inequalities, undermining its potential as a transformative force in India's socio-economic landscape.
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