New Delhi, Feb. 21 -- The Economic Survey of India 2025 highlights a disparity between rising corporate profits and stagnant wage growth in India. It attributes slow wage increases to factors such as the 2019 economic slowdown, the COVID-19 pandemic, and an excess workforce supply. This may impede demand and exacerbate income inequality.

Flagging a surge in corporate profits, the survey observed a lag in proportionate wage increases. According to the survey, this may curb demand and result in an economic slowdown that could adversely affect growth prospects. Sustained economic growth hinges on bolstering employment incomes, which directly fuel consumer spending and spur investment in production capacity.

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