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Inflation is rising, but incomes are stagnant, especially in the unorganised sector. Rivigo founder Deepak Garg noted truck drivers’ salaries in India remain at Rs 25,000-30,000 since 2015
With an annual inflation rate of 6%, the cumulative inflation rate over ten years would be 79%, far outpacing income growth. (Representative/Shutterstock)
Inflation is rising, but incomes are not keeping pace. This is a common grievance across the nation, affecting everyone from office workers to those in the unorganised sector.
This issue was highlighted on LinkedIn by a user who discussed the salaries of truck drivers. Rivigo founder Deepak Garg noted that truck drivers in India continue to earn Rs 25,000-30,000 per month in 2025, the same as they did in 2015. This indicates no income growth over a decade, while expenses have significantly increased.
Garg described this trend as a negative economic indicator. He explained that with an annual inflation rate of 6%, the cumulative inflation rate over ten years would be 79%, far outpacing income growth. However, he argued that this estimate is flawed, as it fails to consider the growth of asset classes such as real estate and equity markets, which greatly influence purchasing power. When these factors are included, the annual inflation rate would be 10-12%, making the cumulative inflation rate even higher.
Garg also pointed out that the situation is similar for delivery boys, Uber and Ola drivers, painters, welders, construction workers, factory workers, and agricultural workers.
The primary reason is that wages in the unorganised sector remain stagnant, while salary increases are observed only in the organised sector. Real income or real wage growth is used to measure income against inflation, showing how much a person’s or a country’s income has actually increased after accounting for inflation.