Stagnant wages amid fast economic growth: We need an Indian Enlightenment

livemint.com:

Subscribe to enjoy similar stories. India’s economic growth story has been impressive. Gross domestic product (GDP) is expanding, corporate profits are looking up and the country is asserting itself as a global economic powerhouse.

But beneath our headline-grabbing figures lies a troubling reality: stagnant wages, biting inflation, insufficient jobs and growing inequality. For millions of Indians, GDP growth has not translated into better livelihoods, creating the paradox of a booming economy that fails to uplift a significant portion of its population. Wage stagnation amid rising inflation: The disparity between India’s economic growth and stagnant wages is stark.

Consider the IT sector, once a beacon of upward mobility. According to The Times of India, the salary for an entry-level software engineer has inched up from ₹3.2 lakh in 2011 to just ₹3.75 lakh in 2024—barely keeping pace with inflation. Meanwhile, CEO compensation in the same sector has quadrupled over the same period.

This trend is alarming, especially in an industry that once championed egalitarianism. Chief economic advisor V. Anantha Nageswaran warns that low wages could stifle India’s long-term potential by weakening consumer demand and the quality of life for millions.

The rise of ‘employed poverty,’ where workers hold jobs but struggle to survive on inadequate wages, is a growing concern, as highlighted by Manish Sabharwal, vice-chairman of Teamlease Services. The stark truth is that while the Indian economy grows in GDP terms, millions of workers remain trapped in low-wage, insecure jobs that fail to offer economic mobility or stability This wage stagnation is already impacting middle-class consumption. The former CEO of Nestlé India had said, “There