Industry Outlook

Pharmaceutical industry in India, with a 3-year CAGR of 12.4 percent and projected CAGR of 15.3 percent is a front runner in salary increase amongst all sectors with 13.5 percent projections for 2013. Backed by growth in allied sectors such as medical devices, medical technology and medical tourism the overall healthcare and life sciences sector also reported the highest salary increase average at 13.1 percent.

Riding on the back of increasing demand and changing consumer preferences, the FMCG sector has been topping the charts on salary increases for the last 5 years. The projections for this year stand at 12.3 percent.

Automotive sector in India took a hit in FY2012 in terms of growth given the ever rising fuel costs, production cuts and temporary plant shutdowns. However, the salary increase projections for 2013 at 11 percent are above the India Inc. average, lowered from actual increase of 12.8 percent in 2012.

Driven by macroeconomic and sector-specific challenges such as delays in clearances, lack of funds and projects getting postponed, the Infrastructure sector is projecting relatively lower salary increase at 6.1 percent.

The Financial industry is still far from a full recovery. For 2013 the financial industry average salary increase projection stands at 8 percent with Securities closing in at 6.6 percent, Banking at 8 percent, and Life insurance at 8.7 percent.

The Telecom industry, challenged by myriad business and regulatory issues continues to lag the Salary Increase space with projections for 2013 at 9.6 percent.

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Hi-Tech Industry posted an average salary increase of 10.5 percent. Margin compression, a cautious outlook in terms of the global economic state and large bench strength have led to IT service organizations projecting a conservative salary increase of 9.6 percent. On the other hand, IT Product organizations, fuelled by growth opportunities in the domestic market and greater penetration in Tier 2 cities posted relatively higher salary increase of 11.2 percent. A dip in sales for consumer devices, coupled with a shift to smarter devices and tablets has dampened the mood for the semiconductor industry which has reported a salary increase of 11.3 percent, down from 12.1 percent in 2012.

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