In the chapter Indian economy 1950-1990 , I have a doubt in the NCERT answer provided by meritnation of question 9. "Does modernisation....." ,the answer given is "both modernisation and employment generation are not contradictory but are complementary to each other." , but modernisation involves the adoption of new technology which is capital intensive and not labour intensive , so as compared with the traditional industries which are labour intensive they provide less employment opportunities ? So what would the the right justification of the question ?
Yes, modernisation does involve adoption of new technology which is capital intensive and provides less employment opportunities as compared to the traditional industries. But, this downfall in the employment opportunities is only for a short period. People do loose jobs in the initial stages of the modernisation but in the long run, the use of modern technology gradually results in a rise in productivity and output. This further raises the income of the people and thereby results in an increased demand for the goods and services. As a result of this, more employment opportunities are made available in order to fulfil the increased demand. Thus, although modernisation leads to a fall in employment in the initial phase of modernisation, but obviously in the latter stages it generates ample employment opportunities for the people. Hence, we can say that both modernisation and employment generation are not contradictory but are in fact complementary to each other.