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As global markets are staring at a slowdown, employees in India are set for a double-digit appraisal

Tejasvi Malhotra by Tejasvi Malhotra
28 September 2022
in Analysis, Economy
Salary Increase Survey
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Salary Increase Survey: With COVID- 19 hitting global markets, experts had predicted that the world economies would crumble under pressure. And it indeed happened.

Large and the so-called developed economies like US, China, and Japan, among others, are either moving towards recession or are recording probable destruction of their economies.

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Amidst all this economic slowdown with severe consequences, India is standing immune with a rank of the world’s fifth largest economy, which is now appraising its working force with double digits.

Indian employees will now get an increased salary

As per recent reports, it was revealed that amid the inflation surrounding and eroding the profitability of companies, Indian employers are preparing to boost salary by 10.4 percent by the year 2023.

In its 28th Salary Increase Survey, consulting firm Aon has said that salaries are expected to rise by double digits. It will nearly match the current year’s 10.6 percent increase.

A partner for human capital solutions at Aon, Roopank Chaudhary said, “Despite the global recessionary headwinds and volatile domestic inflation, salary increases projected in India for 2023 are in the double digits. This increase is a reflection of the confidence that corporate India has in its strong business performance.”

It also highlighted the attrition rate of 20.3 percent, in just the first half of 2022, which was marginally lower than the recorded 21 percent in the year 2021, thus retaining the pressure on salaries.

According to a Salary Increase survey of 1300 companies across 40 industries, it was revealed that around 46 percent of organisations are expected to serve double-digit salary increases.

However, the Salary Increase Survey showed that many employers still consider attrition as one of the biggest challenges.

Amid all the economic chaos disrupting the global market, a steep falling graph can be witnessed leaving companies dilapidated. Their spending are on the boom while earnings are on bane.

Read more: The whole world is witnessing an economic slowdown, but not India – A data driven analysis

Companies globally are distressed

The economic slowdown that is challenging the world is the result of fall in the economic activities in the United States, the impact of Russia’s invasion of Ukraine and the property crisis and barbaric lockdowns in China. All these aspects have contributed the world to witness recession.

China has seen a GDP expansion of a mere 0.4 percent in the first quarter of 2022, at a time when it was expecting a 5.5 percent of GDP growth rate.

Various economic experts, billionaires, investors, players in the stock market, and even officials in the government believe that the US economy is getting nosedived and markets are set to jump 40 percent.

Apart from this, the country’s unemployment rate was seen at levels not recorded since the Great Depression. Reportedly, US lost nearly 20.5 million jobs in April 2020.

Before the Coronavirus spread globally, the impact of the pandemic began in the form of supply chain constraints, making it harder to import goods or parts from China due to factory closures.

Apple, for example, has stated that it anticipates a shortage of iPhones.

Aside from that, shares of numerous Chinese companies, such as Alibaba, have lost 5-10 percent of their market value, and bringing the total loss in the Chinese tech sector to more over $100 billion.

The consistent takedown of Chinese technology businesses has hit harder the Chinese economy, which is currently over-dependent on the sector.

Meanwhile, the successive bans on Chinese companies in countries around the world are weakening China’s tech hegemony, effectively crushing its aim of becoming the next superpower.

Read more: As per Bloomberg’s forecast, India will remain immune to recession

Amid global dilapidatedness, Indian companies are booming

Looking at the other side of the fence, the Indian companies are rigorously working to achieve high. In the last few years, Indian tech companies and startups have demonstrated strong growth.

Various industries like Ed Tech, fintech, food tech, marketing automation, among others, have experienced tremendous growth, with some of them even becoming unicorn.

While tech companies and startups are making a name for themselves in India, they are also looking to expand in the international market and compete with global entities.

India is, currently, on a spree of becoming a superpower in almost every sector possible. Through various governmental schemes like Make in India and Aatmanirbhar Bharat, India is transforming into a global hub of manufacturing, taking the Indian companies to higher level.

As a new development, TATA group recently came in discussion for seeking to assemble iPhones in India. A successful execution of the said task will bring a vast swathe of achievements to India as a whole.

First and foremost, it will jolt the China’s forced hegemony, secondly, India’s mission to total electronics export in 2026 will become a close reality. It will turn the Indian giant company, Tata, into an original equipment manufacturer (OEM).

In last few years, the Indian IT sector has soared immensely high at a breakneck pace. Around 33 Indian startups have achieved the Unicorn status, with their valuation surpassing $1billion.

With the increase in internet users and the IT sector booming, India has now become the second largest online market after China.

Aside from that, the Indian e-commerce industry has taken off, and by 2034, it will have surpassed the United States to become the world’s second-largest e-commerce market.

According to Statista, the market size of Indian e-commerce industry is continuously burgeoning. In the year 2021, its value was recorded at US$84 billion. Further, it is expected to reach the value of US$350 billion by 2030.

All in all, the Indian economy is on a spree to excel and surpass every other economy in the race to become a superpower. On one hand, world economies are tensed with their dilapidated economy, making it difficult for them to stand still.

On the other hand, India is standing high targeting the peak of success and appraising the people (employees) for contributing in India becoming the next superpower.

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