Rural India wages growing in double digits
Updated: Jul 29, 2013 05:59:40pm
New Delhi, Jul 29 (KNN) Wages in rural India have been growing at over 20 per cent between 2010 and 2012, Reserve Bank of India said today.
The real wages are calculated after factoring in the inflation. Thus, even if there is a fierce debate in the country on the poverty line, the RBI macro-economic analysis suggests workers are demanding and receiving plus 20 per cent increase in rural India.
However, persistent inflation has started eating into the real wages as well. But even after factoring the wages in the villages and hinterland are increasing by double digits making the labour market very tight.
“Rural wages, which were growing at over 20 per cent (year-on-year) during 2010-12, grew at a slower pace during 2012-13, but still remain in the high double digits. A significant pick-up in rural inflation in recent months contributed to a faster decline in real wage growth. There is, however, significant variation in wages and in inflation across states, “the RBI analysis said ahead of review of its monetary policy. (KNN/PC)
The real wages are calculated after factoring in the inflation. Thus, even if there is a fierce debate in the country on the poverty line, the RBI macro-economic analysis suggests workers are demanding and receiving plus 20 per cent increase in rural India.
However, persistent inflation has started eating into the real wages as well. But even after factoring the wages in the villages and hinterland are increasing by double digits making the labour market very tight.
“Rural wages, which were growing at over 20 per cent (year-on-year) during 2010-12, grew at a slower pace during 2012-13, but still remain in the high double digits. A significant pick-up in rural inflation in recent months contributed to a faster decline in real wage growth. There is, however, significant variation in wages and in inflation across states, “the RBI analysis said ahead of review of its monetary policy. (KNN/PC)
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