Skip to main content

India’s GDP rose fourfold in 1993-2012, while wages only doubled: ILO

By
India’s gross domestic product (GDP) rose more than fourfold between 1993-94 and 2011-12 but workers salaries only doubled, the International Labour Organization (ILO) said on Monday in the latest indication of low pay and growing wage inequality in the country. Over the last two decades, GDP has risen at an annual average of about 7%. “Overall, this means that GDP rose more than four-fold since 1993”, but low pay and wage inequality India Wage Report. “The India Wage Report shows that low pay and wage inequality remain a serious challenge to India’s path to achieving decent working conditions and inclusive growth,” said the report, adding that the average real wage in India has doubled between 1993-94 and 2011-12.
It said though rural wage increased faster than urban wage, the cumulative wage in urban India is more than double that of rural India, indicating the wage inequality in the country and how decent work remains a constant challenge. India’s strong economic growth is not translating into workers’ salary growth. Citing data from the National Sample Survey Office (NSSO), the report said real average daily wage increased more rapidly in rural than in urban areas and grew faster for casual than for regular workers. Average wages increased faster for women than for men, and in the unorganized sector than in the organized sector. “Nonetheless, low pay remains pervasive and wage inequality is still very high. In 2011–12, the average wage in India was about Rs.247 per day, and the average wage of casual workers was an estimated Rs.143 per day,” it added.
The report said real wage grew faster between 2004-05 and 2011-12 (5.6%) compared to the earlier decade (1993-94 to 2004-05) when it grew 2.6% per year. For the entire period (1993-94 to 2011-12), the average annual growth rate in real wages for all workers was 3.7% per annum. Gender wage gap also remains very high in India by international standards, although it declined from 48% in 1993-94 to 34% in 2011-12. Of all worker groups, the average daily wages of casual rural female workers is the lowest at Rs.104 per day.
The Mint, 21st August 2018

Comments

Post a Comment

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

By
  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm
Post a Comment
Read more

Credit card spending growth declines on RBI gaze, stress build-up

By
  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep
Post a Comment
Read more

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

By
  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and
Post a Comment
Read more