On a sunny morning in Delhi, as the clock edged towards 10 am, Rohan Malhotra’s workday had already begun, not at his desk, but in his head. The 29-year-old employee, who works at a fast-growing wellness firm, said that his anxiety starts building well before he reaches the office. By the time he arrives, it is no longer just about deadlines or deliverables, but about being watched.
Malhotra* describes a workplace where CCTV cameras track not only movement but behaviour, who speaks to whom, how long they pause, and whether they appear “productive enough”. Managers, he said, do not always formally flag issues, but make passing remarks that reveal a constant gaze: a comment about a conversation spotted on camera, a subtle taunt about time spent away from the desk.
“It is not always direct, but you know they are watching," Malhotra told BW Businessworld. Among employees, the awareness has bred a quiet resentment. Some, he added, deliberately speak out within earshot of surveillance systems, a small act of defiance against what they see as an overbearing culture of monitoring. Others internalise it, carrying a low-grade anxiety through the day.
In a company built around the idea of wellness, Malhotra’s experience points to a different reality, one where productivity tools blur into pressure, and oversight begins to shape behaviour in ways that extend far beyond work itself. BW Businessworld spoke to several employees across India Inc and many stated that such pressures are neither isolated nor uniform, but part of a broader pattern shaped by managerial practices, cost-of-living strains and limited bargaining power.
Private Strain Turns Public Unrest
For Tanya*, 26, the strain took a different form. Based in Noida, she said her manager at her previous job routinely denied leave requests, even when she was medically unwell. Long commutes compounded the stress: leaving early each morning and returning home late at night, she found herself trapped in what she described as a “vicious cycle” of exhaustion.
Financial constraints made it difficult to walk away. With loans to repay, household expenses to manage and the high cost of living in a metro, quitting was not an immediate option. “You keep thinking you will manage somehow. But it keeps building," she added. In India, more consumers are using credit to upgrade lifestyles, build assets, and pursue personal ambitions rather than meet day-to-day needs, according to a report by Home Credit India.
The survey showed that aspiration-led borrowing has overtaken need-based credit, driven strongly by younger, digitally savvy consumers. Smartphones and home appliances continue to top the list of reasons for borrowing, accounting for 46 per cent of recent loans. At the same time, entrepreneurship is gaining ground: 25 per cent of respondents now take loans to start or expand a business, up from 21 per cent last year.
Eventually, weighed down by loan repayments, Tanya resigned. She has since taken up another role, where conditions are “comparatively better”, though not without challenges. For her, the change has brought some relief, but not a complete escape from the pressures that defined her earlier job.
“In this job, I have cleared most of the instant loans I had taken and even managed to buy a few gadgets, which I am paying off with my current salary. The challenges are still there, but it’s comparatively better.” Taken together, such accounts show a workforce navigating not just professional expectations, but an ecosystem where economic necessity and workplace culture often leave little room to push back.
That strain has, at times, spilled beyond office walls. In April 2026, amid global economic uncertainty triggered by tensions in West Asia, rare scenes of labour unrest unfolded in Noida, a satellite city of the national capital, where thousands of factory workers took to the streets demanding higher wages and improved working conditions.
The protesters, many of them non-unionised contract workers employed across small manufacturing units, form the backbone of India’s industrial supply chains, producing everything from auto components to garments and electronics. Yet, several workers said their monthly earnings, often in the range of Rs 10,000 to Rs 15,000, have seen little meaningful increase over the years, even as living costs have surged.
In industrial pockets of Noida, even basic living costs can quickly erode incomes. A single-room accommodation in lower-cost areas can be rented for around Rs 5,000 to Rs 7,000 a month. Many workers share rooms to reduce the burden. Food, transport and utilities add to the strain, while any medical expense can push households into financial distress.
A key trigger, workers and analysts noted, has been widening disparities in wage structures across states. A recent, sharp increase in minimum wages in neighbouring Haryana, following similar protests, amplified demands among workers in adjoining regions, who argue that pay scales have failed to keep pace with both inflation and productivity.
Authorities in Uttar Pradesh, where Noida is located, have since announced interim wage revisions in select districts and signalled further measures. But for many workers, these steps fall short of addressing deeper concerns around income stability and fair compensation.
Growth Under Pressure
Even as these tensions play out on the ground, corporate performance has remained resilient on the surface. India Inc likely recorded revenue growth of 8.5 to 9.0 per cent year-on-year in the March quarter of fiscal 2026, supported by demand in sectors such as automobiles and white goods, according to Crisil Intelligence. Yet, margins have begun to compress, with Crisil estimating a contraction of 25 to 50 basis points on-year in the same quarter, and warning of a deeper decline ahead as the West Asia crisis feeds into input costs, logistics and supply chains.
The pressure is not uniform but widespread. Energy-intensive sectors such as chemicals, fertilisers, aviation and shipping are among the hardest hit, while export-oriented industries face rising freight costs and delayed shipments. The State Bank of India’s (SBI's) research has flagged even sharper risks, estimating that sectors accounting for nearly 40 per cent of listed corporate revenues, about Rs 13.75 lakh crore, face downside exposure from elevated energy prices and supply chain disruptions. In a severe scenario, revenue losses could reach Rs 2.75 lakh crore, equivalent to 0.80 per cent of GDP.
“Many Indian companies, particularly in highly competitive and cost-sensitive sectors, do tend to focus strongly on short-term cost optimisation, driven by tight margins, demand volatility, and pressure to deliver quick returns,” said Balasubramanian A, Senior Vice President at TeamLease Services.
That focus, he added, often comes at the expense of longer-term investments in workforce development, technology and research. At the heart of the issue lies a longstanding contradiction: India’s reputation for low-cost labour has not translated into consistently high productivity.
“India’s low labour costs often coexist with low productivity largely due to informal employment structures, limited skilling, and fragmented workforce management practices,” Balasubramanian said. In many sectors, companies have historically relied on abundant labour rather than investing in systems, training and technology that could improve output. A significant portion of the workforce continues to lack structured onboarding and continuous upskilling, directly affecting efficiency.
Corporate adviser Srinath Sridharan framed the issue more starkly. Data across sectors reinforces this gap. Despite steady revenue growth, companies are increasingly relying on price hikes rather than volume expansion to sustain topline performance, indicating limits to productivity-led gains.
“India’s cost advantage has, in many sectors, masked a deeper structural issue: low productivity. Cost arbitrage can enable entry, but it cannot sustain competitiveness,” he said.
The tension between cost control and capability building is visible in how companies allocate resources. “Typically, a significant share of investments goes toward business expansion and strengthening operational capabilities,” Balasubramanian said, adding that spending on workforce development varies widely across industries.
But such investments are often uneven. Sridharan noted that while expansion and market-facing spending remain priorities, “very few companies consciously allocate resources towards leadership development, functional capability building, and organisational depth alongside growth initiatives.” This imbalance has consequences. Skilled workforces are directly linked to productivity and competitiveness, experts say, yet underinvestment in training and development continues to hold back gains.
“Workforce skill levels have a direct impact on productivity, service quality, and operational efficiency,” Balasubramanian said, adding that better-trained employees are able to adapt faster and deliver higher output with fewer errors.
The Cost Of Wellbeing
Beyond skills, employee wellbeing is emerging as another critical factor shaping productivity. Aditya Malik, Chief Revenue Officer at Pazcare, said Indian companies typically protect core benefits such as group health insurance even during cost pressures, though enhancements may be deferred. At the same time, there is growing recognition of the link between wellbeing and performance.
The companies with robust wellness programmes reported a 28 per cent decrease in employee sick days, according to a 2023 survey by Assocham. A Harvard Business Review study found a 3.27 times return on investment for wellness initiatives. Yet, workplace stress remains widespread. A 2026 global sleep survey by ResMed found that 71 per cent of Indian employees say lack of sleep affects their performance, while 58 per cent link heavy workloads to poor sleep. More than three-quarters reported taking a “snooze day” — calling in sick after inadequate rest.
Stress or anxiety was cited as the biggest barrier to consistent sleep by 39 per cent of respondents, followed by work-related pressures at 37 per cent.
“Poor employee wellness has a compounding effect on company performance,” Malik said, noting that mental health concerns and chronic illnesses are rising among younger workers.
Additionally, companies often hesitate to invest heavily in training due to concerns about attrition, but experts argue this is a misplaced trade-off. “Attrition is a natural reality, but training is viewed as a necessary investment rather than a sunk cost,” Balasubramanian said.
Sridharan echoed the view, saying under-investing in people poses a greater risk than losing trained employees. Organisations that invest in development tend to see stronger engagement and retention, he said.
Some companies are attempting to address this through integrated approaches. Aayaan Bery, Sales and Global Marketing Director, KSP Inc, said training in his organisation is embedded into daily operations rather than treated as a separate budget line, with a focus on continuous skill development on the shop floor.
“India’s labour cost advantage is often overstated because it is not matched by productivity. The real gap lies in skill levels, process discipline, and consistency. Low-cost labour without structured training and systems leads to inefficiencies, rework, and lower output per worker. Competitiveness today depends on how well companies can convert labour into skilled, process-driven productivity,” Bery added.
The productivity gap also feeds into a broader shortfall in innovation. “Private sector R&D spending in India remains relatively low due to cost sensitivity, shorter business planning cycles, and limited incentives for long-term innovation investments,” Balasubramanian said. A large share of the Indian industry is dominated by smaller enterprises that lack the financial capacity to invest in research, while even larger firms often prioritise near-term returns.
Sridharan pointed to a cultural dimension as well, noting that many companies focus on incremental improvements rather than long-horizon innovation. Beyond economics, structural issues within corporate India continue to shape outcomes. Research on board composition showed stark underrepresentation of marginalised groups. Scheduled Castes (SCs) and Scheduled Tribes (STs) together hold just 3.5 per cent of board seats among top companies, despite making up nearly a quarter of the population.
Gender disparities are similarly pronounced. A 2026 report by KPMG and AIMA found that 46 per cent of organisations have only 10–30 per cent women in leadership roles, while just 1 per cent of women hold board positions. These imbalances are not just social concerns but economic ones, affecting decision-making, innovation and access to opportunity.
Despite these challenges, there are signs of gradual change. Balasubramanian noted that companies are beginning to shift focus from low-cost labour to building more productive, job-ready workforces as industries formalise. Policy interventions could accelerate this shift. Experts point to the need for tax incentives, stronger industry-academia collaboration and targeted support for smaller enterprises to invest in skilling and innovation.
Sridharan said competitive pressures and global exposure are pushing organisations towards more sustainable value creation, though the transition remains uneven. Meanwhile, as India Inc navigates a more complex global and domestic landscape, the question is no longer just how fast it can grow, but whether that growth can be sustained without addressing the deeper fault lines within its workforce.
Disclaimer: Some names have been changed to protect identities, as the employees requested anonymity, given the sensitivity of workplace issues discussed. |
