Public sector contributes 20% to national income, accounts for 40% of total wages: India Ratings and Research Report
- IBEF
- August 30, 2022
According to a report released by India Ratings and Research, the public sector makes up only 20% of the national income, but pays out close to 40% of all wages.
In an analysis based on gross value added (GVA) statistics given by the National Statistical Office, it was found that while the public sector's average proportion of gross value addition for the ten years ending in FY21 was 19.2%, the percentage of wages was 39.2%. The agency said that the private sector contributes 35.2% of wages while making up 36.3% of GVA for the same time period, indicating that the private sector's participation in GVA and salaries is "more evenly balanced."
According to the agency's research, between FY12 and FY21, nominal wages increased at a CAGR of 10.4%, while return on capital increased at a CAGR of 8.8%.
According to the data, if the ten years were divided into two, growth in wages and return on capital declined in FY17-FY21 compared to FY12-FY16.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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