India is often called the world’s fastest-growing major economy. Glass towers rise over Delhi, multinationals open offices in Mumbai and Bengaluru’s tech scene keeps producing unicorns. Yet according to the State of Working India report from Azim Premji University, around 82% of male workers and 92% of female workers earn less than ₹10,000 a month.
It is a stark contrast. If the economy is growing this fast, why do so many workers see so little of it?
Growth that has not been shared evenly
The report describes a labour market where the benefits of growth have gone to a few. Some sectors, such as manufacturing, have seen wages rise, but not in proportion to the gains. One worrying finding is that labour productivity has grown faster than wages. In plain terms, workers are producing more, but the extra earnings are not reaching them.
Inequality runs deep
The report also points to long-standing divides in who gets which jobs. Women are over-represented in low-paying work such as domestic work, and Scheduled Castes are concentrated in labour-intensive sectors. These patterns keep many workers stuck at the bottom of the pay scale.
What could help
- A national employment policy. Creating decent jobs, especially in the informal sector that employs most of India’s workforce, is the most urgent need.
- Skill development. Training that is linked to real job openings can help workers move into better-paid roles.
- Stronger labour laws. Laws only protect workers if they are enforced, including rules on fair wages.
The bottom line
Growth is only meaningful if it improves how ordinary people live. Governments and businesses will need to work together so that rising output means rising pay for the many, not just the few. Until then, the promise of India’s economic rise will feel distant for millions of workers.
This article is based on the findings of the State of Working India report.
