Globalization has significantly impacted employment in India’s formal sector by creating both opportunities and challenges. On the positive side, globalization has led to increased foreign direct investment (FDI), which has expanded industries such as IT, telecommunications, and manufacturing. This has generated numerous job opportunities, enhanced skill development, and improved wages in these sectors.

However, globalization has also introduced challenges. The competition from international firms has led to job losses in some traditional industries unable to compete globally. Additionally, there has been a shift towards contract and temporary employment, impacting job security and benefits for workers. Overall, while globalization has driven growth and modernization in the formal sector, it has also necessitated adaptive strategies to address its associated challenges.