India has been touted as the world’s fastest-growing major economy. Skyscrapers pierce the Delhi skyline, multinational corporations set up shop in Mumbai, and the tech industry in Bengaluru churns out unicorns at a dizzying pace. But amidst this narrative of economic prosperity, a stark reality persists: a staggering 82% of male and 92% of female workers earn less than Rs. 10,000 per month. This paradox begs the question: is India’s growth story a mirage, benefiting only a select few?
The ‘State of Working India’ report, authored by Azim Premji University, paints a grim picture of India’s labor market. While the economy has expanded, the benefits have been unevenly distributed. While sectors like manufacturing have witnessed wage growth, the gains have been disproportionate. The report highlights a concerning trend: labor productivity has outpaced wage growth, implying that employers are reaping the rewards of increased efficiency without sharing the spoils with their workforce.
The report also underscores the deep-rooted inequalities within the Indian labor market. Caste and gender discrimination persist, with women overrepresented in low-paying jobs like domestic work and Scheduled Castes concentrated in labor-intensive sectors. This systemic bias further exacerbates the plight of the working class.
The government’s role in addressing this crisis cannot be overstated. A National Employment Policy is urgently needed to create decent jobs, especially in the informal sector, which employs the majority of India’s workforce. Skill development programs can equip workers with the necessary skills to access better opportunities. Additionally, strengthening labor laws and enforcing them rigorously is crucial to protect workers’ rights and ensure fair wages.
While India’s economic growth is undeniable, it is essential to remember that growth is meaningless if it does not translate into improved livelihoods for the majority of its citizens. The government and businesses must work together to create an economy that benefits all, not just a privileged few. Until then, the promise of India’s economic miracle will remain elusive for millions.
This article is based on the findings of the ‘State of Working India’ report.
