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India Inc resorted to salary cuts in Q1, will be drag on economic recovery: Report

The “weak” wage growth will prove to be a drag on the overall economic recovery in the medium term as it will affect household consumption, the report by India Ratings and Research said.

An environment of pandemic-led uncertainty and elevated inflation could impact the level of spending and hence the overall demand. Resuscitating wages will be critical for a revival of the overall economy and Capex cycle, which has been languishing even before the COVID-19 outbreak, it said., it said.

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