While India’s exports constituted 11.5 per cent of GDP, its share in the world trade is only 0.8 per cent. Second, India's exports basket is fairly diversified. Some concerns arise with regard to the implications for employment in case of a slowdown in the exports sector, especially with regard to the significant specialisation in BPO/IT Enable Services.
Rapid job growth that absorbs the huge supply of agricultural labour into its industrial work force is necessary for socio-economic stability in India. Any negative impact on employment resulting in substantial decrease of real earnings and widening income inequality is likely to reduce overall welfare and increase the cost of structural adjustments required, especially in the absence of meaningful social safety nets.