Social Science (087) — AI-generated practice question

The policy of allowing flexible/short-term contracts helps attract foreign investment because it reduces labour costs for companies, making India a cheaper and more profitable destination for MNCs.

However, this creates a direct trade-off against workers' rights. Workers hired on temporary contracts lose job security, health insurance, provident fund, and overtime benefits. As seen in the garment industry, workers like Sushila end up earning less than half their previous wages, working long hours with no guaranteed income — resembling unorganised sector conditions even in organised industries.

Thus, while investment increases, workers bear the cost through exploitation and loss of legal protections.

Source: Impact of Globalisation in India; Competition and Uncertain Employment — Chapter 4

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• The examiner wants both sides of the trade-off stated clearly: benefit (attracts FDI, cuts costs) vs. harm (job insecurity, loss of benefits).
• Use specific evidence from the passage — Sushila's example or the garment industry — to support the workers' side. This shows application.
• Avoid writing vaguely; name the specific benefits lost (health insurance, provident fund, overtime) for full marks.
• 3 marks = roughly 2-3 crisp points; no need for an elaborate essay.