If you want to be rich - come to India or China
February 20th, 2008 - by Nazia VasiFor years, every summer young Indians and Chinese fly west to greener pastures in search of a more lucrative job. “India is no place to make money, earn your money abroad, then come back to India to retire,” was the advice I got from the older and wiser.
Now however, it seems the tables are turning, a lack of skilled employees, high attrition rates and a booming realty market means that Indian and Chinese salaries are registering double digit growth, - for 5 consecutive years now. Salaries in corporate India are set to rise at the fastest pace in the world this year. Salaries rose 15.1% last year, one of the highest in the world and the highest in the Asia-Pacific region - the sector doling out the most moolah was Realty, according to human resources consulting firm Hewitt Associates. Of the different strata in a company, junior management and professionals have recieved the highest rise.
Hewitt’s statitics for China show similar double digit growth. China’s highest salary jump was in 2006, when increments rose 7% to 9%in tier one cities such as Beijing, Shanghai and Guangzhou and and by 7.5% to 10.6% in tier two cities - Chengdu, Sichuan, Hangzhou and Zhejiang and Wuhan.
Will the rise in salary lead to India and China’s diminishing competitive advantage? or will it lead to a flood of reverse brain drain?
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