Firms 'swimming' in profits but wage, job growth slow

In FY24, corporate profitability soared to its highest level since fiscal 2008, with the profit-to-GDP ratio hitting 4.8%

- Mayur Bhalerao

Corporate India is riding a wave of record-breaking profits, but the tide isn't lifting all boats. The Economic Survey 2024-25 reveals this stark reality. While companies are raking in their highest earnings in 15 years, wage growth and jobs are lagging far behind, sparking concern over rising income inequality and its impact on the economy.

In 2023-24, corporate profitability soared to its highest since fiscal 2008, with the profit-to-GDP ratio hitting 4.8%, more than double the 2.1% recorded in FY23. Sectors like financials, energy and automobiles led the charge, posting robust earnings. But while corporate profits surged by a staggering 22.3%, employment grew by a meagre 1.5%, leaving millions of workers out of the prosperity loop.