Since the 1990s, the government has followed a policy of liberalisation, encouraging private companies and foreign firms to invest in sectors earlier reserved for the government, such as telecom, civil aviation, and power. This shift has led to a situation where licenses are no longer required to open industries, and foreign products are easily available.

A significant impact of these changes is the decline in secure jobs. Very few people have access to secure employment, and even regular salaried jobs are becoming insecure due to the rise in contract labour. Employment by the government, which was previously a major avenue for increasing the well-being of the population, is also coming down.

Simultaneously, the service sector—comprising shops, banks, the IT industry, and hotels—is employing more people, leading to the growth of the urban middle class. However, many Indian companies have been bought over by multinationals (like Coca Cola buying Parle drinks), and liberalisation appears to be associated with rising income inequality.

To counter these challenges and generate employment, the government has introduced schemes like MUDRA, Aatmanirbhar Bharat, and Make in India. These initiatives aim to support self-employment and marginalised sections of society, even as India remains largely an agricultural country.