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Emerging Asia Economics Update

Emerging Asia Economics Update

Indian civil service pay raise won’t solve corruption, inflation

India’s 6th Pay Commission recommendation for generous central government worker pay hikes may have little, if any, impact on constraining corruption in the civil service but it will certainly stoke inflationary concerns. If the recommendations are implemented (and state authorities follow suit), it will be another signal that the Government is willing to set back India’s economic reform program, and long term growth prospects, for the sake of upcoming state and federal elections.

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