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More Investments, Increased Employment and Wage Growth Expected in 2025: CII Industry Survey

The private sector in India has long been an indicator of the overall economic health of the country. Looking at the trends of investments, employment and growth in wages in the private sector helps understand the economic policies, capex formation, and expected GDP outcomes. 

The Confederation for Indian Industry (CII), with its industry-leading expertise, initiated an Industry survey to assess the pickup in private-sector investments, employment in the private sector, and growth in wages in the private sector. An interim report based on a sample of 300 firms spread across all industry sizes (Large, Medium, and Small) threw some positive results, which underscores the fundamental optimism about the Indian economy. What does the CII Industry Survey indicate:

Current economic environment is conducive for private investment:

The CII survey, which was conducted over the past 30 days, suggests that 75% of the respondents believe that the current economic environment for private investments is favourable. It also highlighted that 90% of firms surveyed have made investments in the last 1.5 years for amounts ranging below 5 crores to more than 500 crores. 

Keeping up with the positive trend in private investments, 59% of the firms said that they will invest in the second half of FY ’25. Whereas, 70% of the firms surveyed said that they would invest in FY’26 as well. 

Both direct and indirect employment expected to rise

Employment generation has been at the centre stage in recent policy discussions on which India’s vision of a “Viksit Bharat” by 2047 is hinged. Encouragingly, the early results from the survey show that about 97% of the sample firms are likely to increase employment in both 2024-25 and 2025-26. Around 79% of firms have seen an increase in employment in the past three years and the trajectory to add more to the workforce will continue this year as well. In addition to the existing workforce, 42% to 46% of the firms indicate that they will generate 10-20% more employment in FY ’25 and FY’26. Whereas 15% to 25% companies expect employment generation to touch above 20% in FY’25 and FY’26. 

The average increase in direct employment due to planned investments in next one year is expected to be in the range of 11% to 22% in agro & food processing, manufacturing, mining and service industry. 

Similarly, indirect employment in these industries will encompass 11-14% growth in employment in addition to the existing workforce. 

As India also progresses towards upskilling and reskilling its existing workforce, the time taken to fill vacancies is an important indicator of the current level of talent pool and its ability to meet the needs of the industries. According to the CII Industry Survey results, there is a need to have more skilled staff at the higher level in sample firms.

Competitive wages to grow

From the sample firms studied, there was an observed growth in wages across all levels in FY’24 for senior management, managerial/ supervisory roles, and regular workers. This average wage growth ranges from 38-47% for senior management and 16-36% for contractual workers. 

The same trend was also seen in FY’25, indicating a strong competitive growth in wages across the board, contributing to boosting talent retention and enhancing overall industry sentiments. 

The overall growth trajectory for industries is expected to move towards the positive side, indicating a robust and sustainable expansion. The upcoming budget is anticipated to play a massive role in generating employment, increasing wages and investments in the economy, paving way for long-term resilience in the industry. 

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