India’s Chief Economic Advisor (CEA) has called on companies to increase wages, highlighting that corporate profits have far outpaced wage growth. The Economic Survey 2025, presented a day before the Union Budget, underscores the need for higher wages, especially for middle and lower-income groups. The report reveals that while employee expenses grew by 13% in 2024, profit after tax surged by 31.7%. Wage stagnation is particularly severe in entry-level IT positions.
The CEA emphasizes that a safe, secure, and satisfactory workplace is crucial for long-term employee morale and productivity. The government believes that enlightened self-interest and long-term thinking are essential for employers to realize the importance of fair wages. The Economic Survey also mentions that wage growth can boost consumer spending, driving economic growth.
Additionally, the report touches on the broader economic landscape, noting that India has shown resilience amid global economic uncertainties. The CEA suggests that companies should not only focus on immediate profits but also consider the long-term benefits of investing in their workforce. By raising wages, companies can contribute to a more robust and sustainable economy.
