A recent FICCI-Quess report highlights a glaring dichotomy within the Indian economy: while private sector profits have skyrocketed, employee wages have stagnated or even declined. The Federation of Indian Chambers of Commerce and Industry (FICCI), which describes itself as the voice of Indian business and industry, partnered with Quess Corp, a business service provider, to present these findings. The report’s origin is worth noting, as it frames the issues through the lens of the corporates.

The data paints a stark picture. Between 2019 and 2023, the compound annual growth rate (CAGR) of wages across six sectors ranged from a meagre 0.8% in the engineering, manufacturing, process, and infrastructure (EMPI) sectors to 5.4% in the fast-moving consumer goods (FMCG) sector. Other sectors fared similarly: 2.8% in BFSI (banking, financial services, and insurance), 3.7% in retail, 4% in IT, and 4.2% in logistics. Meanwhile, retail inflation for the same period rose by 4.8%, 6.2%, 5.5%, 6.7%, and 5.4% in successive years. This means that for many workers, wage increases did not even keep pace with inflation, effectively reducing their purchasing power.

To make this clearer, consider the hypothetical case of Narendra, an employee in the infrastructure industry. If his wage in 2019 was Rs. 100, it rose to only Rs. 100.8 in 2020. Adjusting for the 4.8% inflation that year, his real wage would fall to Rs. 96. In contrast, Amit, working in the consumer goods sector with a 2019 wage of Rs. 100, saw his wage rise to Rs. 105.4 by 2020. After accounting for inflation, Amit's real wage was just Rs. 100.6—a mere Rs. 0.60 gain.

Contrast this with the corporate sector’s soaring profits, which grew fourfold between 2019 and 2023. If a company earned Rs. 100 in profits in 2019, it made Rs. 400 in 2023. For employees like Narendra, whose real wage fell, this disparity underscores a troubling trend: the wealth generated by corporations is being concentrated at the top while workers struggle to maintain their standard of living.

Corporate giants like Ambani and Adani continue to amass wealth, while workers in their companies see diminishing returns on their labour. As essential goods become increasingly expensive, families are struggling to balance their budgets. This is not a new phenomenon—we have been raising these concerns for years. Yet, it is curious why business leaders and policymakers, including Chief Economic Advisor V. Anantha Nageswaran, are now urging the corporate sector to act.

The answer lies in the fact that consumer spending drives corporate revenues. Salaries enable people to purchase goods and services—be it cars, vacations, or kitchen appliances. If wages fail to outpace inflation, discretionary spending shrinks. For instance, Narendra may abandon plans to buy a car, and Amit might cancel a family vacation. A drop in consumer demand leads to unsold goods, shrinking corporate profits. This, in turn, threatens the cycle of profit growth and the political funding that corporations provide to the ruling BJP. Declining wages, therefore, pose a dual threat: to corporate profitability and to the political machinery that relies on it.

Yet, no one appears genuinely concerned about the struggles of ordinary people. These figures represent the formal sector, where conditions, though dire, are still better than in the precarious informal economy. Public funding for health and education has been consistently eroded, pushing families toward costly private providers. Welfare schemes have also seen significant cuts, leaving many without a safety net.

In sum, the picture for India’s working population is bleak. While corporate profits soar, wages stagnate, public services falter, and basic necessities become harder to afford. The system is pushing workers to the brink. The BJP government, to profit generation for its cronies, is further changing labour laws, cutting down corporate tax. Policies are being made to benefit the corporate sector and to the detriment of the common people.

The stagnation or decline in real wages for the majority, contrasted with the exorbitant growth in profits for corporate owners, has fuelled a surge in inequality across the country—a reality highlighted by many. According to Oxfam International, a staggering 73% of the wealth generated in 2017 went to the richest 1% of the population, while the bottom half saw their wealth rise by a mere 1%. Shockingly, rising healthcare costs are driving two people into poverty every two seconds! For someone working on minimum wage in rural India, it would take an unimaginable 941 years to earn what the highest-paid executive at a leading garment company makes in a single year.

Earlier this year, the World Inequality Lab reported that income inequality in India today surpasses even the levels seen during the British regime! Yet, when questioned about this alarming trend, Prime Minister Narendra Modi reportedly responded: “So should everyone be poor?” Such a response underscores the shocking insensitivity and apathy of the government toward the working class. The policies of the BJP government have been clear from the outset: prioritise filling the coffers of capitalists, even if it means leaving the poor to struggle for their very survival.

These figures only scrape the surface of the grim reality faced daily by millions of Indians striving for a dignified life. Basic necessities—dignified housing, access to clean water and toilets, nutritious food, affordable education, and healthcare—remain a distant dream for the majority. While Narendra Modi is busy defending ‘wealth creators’ like Adani and Ambani, the people of India are consumed with the fight for survival. The government’s fixation on ‘start-ups’ rings hollow when it cannot even guarantee proper employment for the youth. Families are increasingly reliant on loans to meet essential needs, and with debts piling up, jobs scarce, and incomes dwindling, the future appears relentlessly grim.

The demands for dignified employment, affordable housing, accessible healthcare and education, increased corporate taxes, and greater government spending on public goods must take centre stage in our politics. The priority for a just and equitable future is clear: ousting the RSS-BJP government, which has worked tirelessly for crony capitalists.