What are the social implications of …

It means that very few people have the experience of employment in large firms where they get to meet people from other regions and backgrounds. Urban settings do provide a corrective to this i.e. neighbours in the city could be from different regions; but by and large, work for most Indians is still in small scale workplaces.  In small workplaces, personal relationships help determine many aspects of work. If the employer likes you, you may get a salary hike and if you have a fight with him/her, you may lose your job. This is different from large scale organisations where there are well-defined rules, where recruitment is more transparent and there are mechanisms for complaints and redressal if you disagree with your immediate superior.  Very few Indians have access to secure jobs with benefits. Of those who do, two thirds work for the government. This is why government jobs are so popular. The rest are forced to depend on their children in their old age.