Energy transition and Middle-Class Families in India
Energy transition and Middle-Class Families in India: India, after its economic reform in 1991, is changing rapidly in many aspects. The economy has been experiencing growth rates during the last two decades that most countries around the world couldn’t even dream it.
The energy market that historically was dominated by coal as the main driving force is changing in favor of other energy sources gradually. On the other hand, the concept of a Middle-Class family is getting more serious after economic reform.
The coal industry, in many cases, needed unskilled workers that could do needed physical works. As newly developing energy sources using technology that needs skilled workers, uneducated people have fewer chances to find job opportunities in that markets. Solar power, Wind power, and Natural gas industries could provide fewer job opportunities for unskilled workers.
Lower economic deciles as the majority of unskilled workers in most cases may not be able to compete with skilled workers that mostly belong to middle-class families. This situation intensifies the existing gap in the economy among different deciles. The case could be imagined when that the private sector is in charge of those newly developing industries. At the same time, the private sector fighting to maximize its profit from the market has no responsibility to provide job opportunities for the existing workforce in society.
Thanks to the capital-intensive energy industries, middle-class families could fill empty positions when skilled workers were needed. This trend in the short term could better off middle economic deciles. In the long term, the private sector prefers to decrease its reliance on the labor force and cut its expenses by automation.
As moving toward using machines instead of human beings could cut prices for investors, sooner or later, many jobs could wane, and the human workforce could be replaced by machines. Automation destroys many current jobs, but in the long term, it provides opportunities that could mostly be covered by skilled workers.
The LNG industry is a great example that, compared to the coal industry, needs less labor force. Even needed human beings in this industry include skilled workforces. By dominance of energy sources with the same characteristics, it could be seen that middle-class deciles of India’s economy could gain created jobs due to these changes. In fact, it could be expected that middle economic deciles gain future jobs that even do not exist now.