India’s landmark labour reforms promise change, but can they break the wage stagnation trap and create more jobs? That’s the real question

By T Muralidharan

Will it solve wage stagnation problem?

The short answer is no. Let me explain why. India’s wage puzzle is one of the most enduring and least understood aspects of its economic story. Over the past two decades, India has grown faster than most major economies. Large corporates have scaled, startups have flourished, exports have grown (except in a few items post-Trump tariffs), and digital infrastructure has expanded dramatically. Yet, under the surface of this impressive economic rise lies a far more troubling reality: wages in India have not kept pace with growth.

For millions of young Indians entering the labour force each year, i

See Full Page