Inflation Impacts Wage Hike: The average salary of those working in small businesses is $1656 which is much less than the national average per capita income of $2800.
Inflation Hits Wage Hike: Small companies are providing the most employment opportunities in the country. In the current year 2024, till September, small businesses related to manufacturing, trade and services have provided 11 million i.e. 1.10 crore jobs, due to which the number of people working in these small companies has increased from 109.6 million (10.96 crores) in the last year 2022-23 to 120.6 million (12.06 crores).
Impact of inflation on salary hike
According to a Reuters report, the impact of high inflation has been seen on the salary hike of these employees. Even after the Indian economy showed growth at the rate of 7 percent, overcoming unemployment has been the biggest challenge for the government led by Prime Minister Narendra Modi. This week on 24 December 2024, the government has released a report.
According to this report, the number of small manufacturing businesses, which include garment manufacturing companies, auto component manufacturing companies and food processing companies, has increased from 17.83 million (1.783 crores) in 2022-23 to 20.15 million (2.015 crores) in 2023-24. While the number of small business people related to manufacturing, trade and services has increased from 65 million (6.5 crores) to 73.4 million (7.34 crores).
Small businesses provide the most employment
Saurabh Garg, Secretary, Ministry of Statistics, said, the unincorporated non-agricultural sector, which includes small manufacturing businesses, trade and other services, plays a big role in accelerating the economy as well as providing employment opportunities. He said that during October 2023 to September 2024, the number of small businesses has increased by 12.84 percent while employment opportunities have increased by 10 percent.
Small businesses are in rural or slum areas
According to the report, inflation has affected the salary increase of people. The salary of those who were given jobs on the basis of nominal terms in 2023-24 has increased by 13% to Rs 141,071 (1656 dollars), which is a marginal increase compared to the annual average inflation rate of about 5.5%. These types of small businesses are mostly in slum areas in cities or in rural areas. And the average income of people working in such small businesses is much less than the national average per capita income of the country which is around $ 2,800.