Occasionally, the Indian authorities recognize, although gently, that real income (that is, income after inflation discount) of most Indians have been falling.
(1) The data of the Annual Industries Survey show that gross emoluments per person involved in the factory sector organized in 2022-23 (the last year available) were 3 percent lower than previous year, in 2018-19.1 (All figures in this note are rounded).
(2) Real, agricultural and non -agricultural rural salaries have remained trapped in virtual at the same level for almost a decade. He Economic Survey 2024-25 It provides the following picture of the image since May 2021:
Real year -on -year growth in rural wages, men
(3) In the period since 2017-18, real wages of salaried/regular workers have fallen by 6 percent for men and 13 percent for women. Salaries are expressed in the terms of Rupia of 2012 in the table below.
(4) The income of independent workers have even fallen abruptly during the same period, in 9 percent for men and 32 percent For women. (It should also be noted that earnings for independent workers are calculated excluding people on their own who reported winning as zero).
This reflects the condition of most workers in India. The proportion of independent workers was already 52 percent of the workforce in 2017-18. Now it has increased to more than 58 percent by 2023-24. He Economic survey TRIES TO SPIN THIS, SAYING THAT “this shift reflects growing entrepreneurial activity and a preference for flexible work arrangements,” but in fact the rising figures of self-Emplyment reflect the mask of the unemployed or petty, or living a living a living a living a living a living a living a living a living living a living a living a living a living alhow, or living a living alhow, or living a living in a living in a living a living in a living in a living in living a living in a living in Vivir en la vida viviendo viviendo para vivir viviendo para vivir viviendo en vivir viviendo viviendo en una vida viviendo en vivir viviendo en vivir una vida viviendo living in living a life living in living living in living living in living living in living a home in a home in Petty in Petty. Trade. Meanwhile, the proportion of workers in regular/employees decreased from 23 % to 22 percent that changed the same period.
(5) The real daily salaries of casual workers increased by 19 percent for men and 24 percent for women between 2018 and 19 and 2023-24. But then casual workers seem to be obtaining less progressive days of this period. As a result, in its total income it may not have increased much. Due to lack of work, the proportion of casual workers in the workforce decreased sharply, from 25 % to 20 %.
(6) The fall in real income seems to be more steep in some of the Duta sectors. The data of an NCAER study of workers of the Food Delivery Platform show that their real income fell 24 percent between 2019 and 2022.2
Even More Surprising are the facts reported in Recent Note by a Website, ‘Careers360’: The Entry-Level Salaries in Two of India’s Leading Software Firms, TCS and Infosys, have stagnated in nominal term for the past fail in real fail in real fail in real fail in real fail in real fail in real fall Fall Fall Falls, Whials, Whials, Whials, Whials, Whials, Whials, Whials, Whials, Whials, Walls, Wallsing Fals, Whialsing False Falsing False Falseing: Whialsing Fapsing Falls. The TCS engineering apprentice received RS 3.15 Lakh per year in 2007, received RS 2.95-3.3 Lakh per year in 2024, a 60 percent drop in real terms. A systems engineer apprentice at Infosys RS 3.25 Lakh per year in 2010 and RS 3.6 Lakh per year in 2024, 49 percent fall in real terms. Careers360 says that the situation is similar in all other software companies.3 The note indicates that this has taken place even when cost engineers would have to incur for their education have multiplied; This implies that it will take much longer to pay their educational loans.
DEPRESSION DEMAND
All these developments have resulted in the depression of the demand for ordinary assets of mass consumption. This can be seen in the Industrial Production Data Index (IIP). The growth of non -durable consumers for daily use, such as soap, detergent, toothpaste, powder tea, food products, medications, paper, etc.
Long before the Covid block, the unnatural production was already slowing down. Duration The Covid, expected, production fell directly; Then he recovered after the blockade finished. However, in the recent period, production seems to be directly again. The chiefs of the main companies of rapid movement consumer goods (FMCG) have been widely mentioned in the media that lament the lack of demand.
Some other elements of mass consumption are classified strangely by the IIP as “consumer durable”, which is presumed to last more than a year. However, it makes more sense to group textiles, clothing and leather items with soap and toothpaste instead of cars and electronic items. The production of textiles, clothing and leather items provides an equally gloomy image.
The above data provides glimpses in the depression of consumption by the fasters of the Indians, not only in relative terms, but in absolute terms.
Since industries that manufacture mass consumption goods tend to be relatively intensive in labor, the shortage of demand of these goods would have an impact on employment itself. For example, it is estimated that the entire textile value chain, from fiber to turn, fabric, processing and garments, generates employment for 45 million, one of the largest sources of employment in the country. Government’s efforts to generate demand for Indian textiles focus exclusively on the increase in Indian exports (see, for example, discussion in the Economic Survey 2024-25), which represents approximately a fifth or demand. The growth of Domestic Textile demand is linked to an increase in people’s income. The consumption of per capita fiber of India is 5.5 kg, which is less than half of the world average; In comparison, the average of the South Asia is 7.1 kg, Latin America 8.9 kg and China 14 kg. You could tell a similar story or other elements or mass consumption.
This demand for demand is not a temporary phenomenon, caused by demonetization, blockages or similar. It is an underlying condition of the Indian economy as a whole. Rather, the spell of the rapid duration of the growth of India 2004-12 seems to have been a temporary phenomenon, caused by Footloose international capital flows. Since 2012, growth has slowed, demand has stagnated, the private corporate sector has refused to embark on a new investment boom, and income in the fixed informal/non -organized sector has been reduced. The episodes in the last decade, such as demonetization, the imposition of the tax regime of goods and services, and the Covid block, undoubtedly worsened the conditions, but just after some years have passed, the stagnation of the demand has continued. The large number of government delivery schemes are mere palliative to divert people to realize the need for a fundamental change.