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February 3, 2025 at 03:33 PM
🔆 📊 Higher Corporate Profits, Stagnant Wage Growth Hindering Economy
✅ Rising Profits, Slow Wages: Corporate profits surged 22.3% in FY24, but wages grew only 1.5%, causing concerns about income inequality and demand slowdown.
✅ Profit-to-GDP Ratio: Nifty 500 companies saw profit-to-GDP ratio rise to 4.8%, the highest since FY08.
✅ Labour Market Trends: Unemployment dropped, and labour force participation improved, but wage growth moderated over the past four years.
✅ Sectoral Growth: Digital economy and renewable energy offer high-quality jobs, crucial for India’s Viksit Bharat vision.
✅ Policy Recommendation: The Economic Survey calls for fair income distribution, labour-friendly regulations, and employment-driven economic growth.
🔔 Balanced wage growth is key to sustaining demand and economic stability!