Shumita Sharma Deveshwar

Director, India Research
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Rural wage increases will sustain structural inflation

Overview

Though double-digit salary growth in urban India has been characteristic of industries such as IT and pharmaceuticals for the past decade, increased proof of rising wage levels in rural India is now emerging. The central bank is finally taking notice of this key structural driver of inflation not merely by aggressively hiking interest rates but also by cautioning about higher wages, including in public statements ahead of its 26 July quarterly monetary policy review when it raised...

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