THE SHARP SLUMP in economic growth rate to 5.4% in July-September this year has sparked concerns among policymakers that low single-digit income growth in the corporate sector despite 4x (four-times) growth in profits over the last four years, is one of the reasons for slowing demand.
What has triggered conversations within corporate boardrooms, key economic ministries, and between the two, is a report prepared for the government by industry chamber Ficci and Quess Corp Ltd, a tech-enabled staffing firm with 3,000-plus clients, which showed that the compounded annual wage growth rate across six sectors between 2019 and 2023 ranged between 0.8% for the engineering, manufacturing, process and infrastructure (EMPI) companies and 5.4% for fast-moving consumer goods (FMCG) firms.
What has made matters worse for workers even in formal sectors is a meagre or negative growth in real incomes i.e., wage growth when adjusted for price rise or inflation. Over the five years from 2019-20 till 2023-24, retail inflation rose 4.8%, 6.2%, 5.5%, 6.7% and 5.4%, respectively.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
More Indians looking to fly biz class this holiday season
The number of Indians eyeing to fly business class has seen a sharp uptick this holiday season compared to last year. While the trend is more pronounced in international travel, travel agents and online platforms suggest that it is also emerging on many domestic routes.
Markets slump over 1%
● Investors' wealth down ₹4.92 lakh cr
EPFO weighs higher equity investments
● Labour ministry panel to look at ways to raise exposure
Indian firms turn to euro, yen swaps to trim borrowing cost
INDIAN FIRMS ARE opting for cross-currency swaps to convert part of their debt into the euro or the Japanese yen in order to trim borrowing costs, said bankers.
IIT-Madras to offer fine arts, culture courses
A FIRST for Indian Institutes of Technology (IITs), IIT-Madras on Tuesday said it would offer two supernumerary seats in each undergraduate programme to students who have achieved excellence in fine arts and culture, starting from the upcoming academic session.
Not even 2% work-linked higher education courses yet: Report
EDUCATION-INDUSTRY MISMATCH
The world's busiest airline routes in 2024 are largely in Asia
● Leisure continues to outshine corporate trips
Panel suggests LS elections template for entrance tests
DRAWING PARALLELS WITH the conduct of general elections, a high-level committee set up by the Education ministry and chaired by former ISRO chief K Radhakrishnan has proposed a similar framework for holding important national entrance tests to ensure transparency.
Siddique murder: Court sends accused to police custody till Dec 20
A SPECIAL COURT in Mumbai on Tuesday remanded five accused arrested in NCP leader Baba Siddique's murder case to police custody till December 20 after investigators said they need to interrogate them about an absconding accused and the weapons used in the crime.
DPIIT inks pact with HDFC Bank
THE DEPARTMENT FOR Promotion of Industry and Internal Trade (DPIIT) on Tuesday said it has inked pacts with HDFC Bank and Tally Solutions to help startups growth.
