CEA calls for striking balance between corporate profitability, workers’ income
New Indian ExpressNEW DELHI: The anemic growth in private consumption has started to give jitters to the government as the chief economic advisor to the Ministry of Finance Dr V Anantha Nageswaran on Thursday called for a balance between corporate profitability and workers’ income growth. “While it is good to improve balance sheets, corporate profitability and workers’ income growth has to be balanced, without this parity, there will not be adequate demand in the economy for corporate products to be purchased,” said Nageswaran. While these contracts are formal in nature – the workers receive employee benefits like provident fund and health insurance etc – but the wage growth for contract employees have not kept up with inflation,” CEA Nageswaran said. CEA’s statement assumes significance as second quarter GDP growth in the current financial year fell to a 2-year low of 5.4% primarily because of slow private consumption and capex growth.
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