Mumbai: India is set for a $ 50 billion consumption and savings boost as the next Decadal Wage Revision for Central Govt Employes and Pensioners, Due in Jan 2026, will trigger salary snires for state govt empt empt And Public Sector undertakings.
According to a report by UBS, The 8th Central Pay Commission Pay Hike will shape India's Economic Trajectory from 2026-28, with Around 3.1 Crore People-1.8 Crore Govt Employes and 1.3 Crore Pensioners-Standing to Benefit. UBS Expects the Hike to Boost Savings more than consumption, while keeping India's fiscal position stable, with Govt focused on Macro Stability and Investment-LED GROWTH.
UBS Outlines Three Scenarios for the 8th CPC Wage Hike. Its Base Case Assumes A 15-20% Increase, Below 24% Recommended Last Time, Raising Wage Bill by Rs 4.5 Lakh Crore ($ 50 billion), without disrupting Macro Forecasts. A 20-25% Hike BOST BOST GDP Growth But Push Up Interest Rates. A Steper 40-45% Increase Could Weaken Rupee, Spike Inflation, Force RBI to Hike Rate and Initial Accelerate but Later Dampen GDP Growth.
(Tagstotranslate) Business News (T) Wage Revision Central Government (T) UBS Report India (T) Rs 4.5 Lakh Crore Wage Bill (T) Pensioners Benefit in India (T) Benefit in India Trajectory India 2026-28 (T) 8th Central Pay Commission
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