Disadvantages Of Privatization

India 's workforce comprises nearly 94 per cent in the unorganised sector, with the whole agriculture sector falling under the informal category, while only one-fifth of the non-agriculture workers are found in the organized sector. The labor in India consists of about 487 million workers of which over 94 percent works in unincorporated, unorganized enterprises ranging from pushcart vendors to home-based diamond and gem polishing operations. Since 1991, with the beginning of economic reforms, the Indian market has been thrown open to the market forces and hence cost control and downsizing have become watchword of the day. There has been another glaring problem that comes up evidently that even in the formal sector, a large number of organizations are coming up with the objective of privatization, and such organizations are regulating its activities as per the market forces. Although, this phenomenon has not been widely accepted, one may observe the grey area as ‘semi-organized sector’ between organized and unorganized sectors. Workers working in these private but formal organizations do not enjoy any assurance of wage increase, service security and social security provisions as such.
With the progress of rapid urbanization and structural unemployment, the process of improvement of economic units has become vital. The urban centers are overcrowded with large number of floating unemployed and lowly paid workers. On the one hand, it is providing advantage to the medium, small