India Inc Wage Growth Slows to Seven-Year Low Amid Economic Deceleration

India's economic activity showed signs of slowing in October 2025, with the HSBC Flash India Composite PMI falling to 59.9 from 61.0 in September, marking a five-month low driven predominantly by weaker services sector growth. Despite this moderation, manufacturing activity saw a slight uptick, though new orders and international demand softened notably, impacted by higher U.S. tariffs on Indian goods amid ongoing trade tensions. Staff costs among India's listed non-government, non-financial companies increased at the slowest rate in seven years at 7.7%, reflecting companies' efforts to tighten overheads amid a broader economic slowdown and easing commodity prices; meanwhile, corporate revenue growth slowed to 5-6% year-on-year in Q2 FY26, with key sectors like power, coal, steel, and IT under pressure, and EBITDA margins contracting due to cost rises. In contrast, China's economy grew at its slowest pace in a year at 4.8% in Q3 2025, burdened by weak domestic consumption and escalating U.S. trade tariffs, leading to a shift in export markets but ongoing structural challenges. Overall, India continues to outperform China and other major global peers, supported by strong domestic fundamentals despite external headwinds and softening business sentiment.