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In today’s newsletter:

• Indian IT CEO pay ⬆️ 160%,  Fresher pay ⬆️ 4%
• Tech policy 2024: Where are the rules 🤔
• GST blow for Cars24, Spinny, CarDekho

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In the world of Indian IT, while CEOs continue to make merry, freshers appear to be getting a raw deal.

Chief Executives at India’s top five IT companies have seen their salaries soar by a whopping 160% in the past five years, reaching a median of Rs 84 crore in FY24.

• In contrast, fresher salaries saw a meager 4% increase over the same period, rising from Rs 3.6 lakh to Rs 4 lakh annually.

The data covers TCS, Infosys, HCLTech, Wipro, and Tech Mahindra.

If one were to look at another metric, the CEO-to-fresher pay ratio, the gap is stark.

• Wipro leads with a ratio of 1,702, followed by Tech Mahindra at 1,383.
• HCLTech and Infosys stand at 707 and 677, respectively, while TCS, the lowest, is at 192.

In the second quarter of FY25, India’s GDP growth slowed to 5.4% shockingly.

• This prompted India’s Chief Economic Advisor V Anantha Nageswaran to ask India Inc. to step up for an equitable distribution of profits between capital and workers.

Rising profits of corporates in the last five years and stagnant salary growth have resulted in muted consumption, which is worrying many in the power corridors.

“I don't know why the board is rewarding CEOs and the top 1% of people more and more while exploiting the bottom of the pyramid. It's very wrong,” former Infosys CFO Mohandas Pai told us.

However, many industry experts say unchanged fresher salaries are a play of demand-supply.

• One analyst pointed out that freshers require extensive training, which keeps entry-level wages low.

It's not just the IT sector, the phenomenon has been seen across industries, with wage hikes not even matching inflation in certain cases.

Dig deeper

India’s tech policy landscape remains a mix of progress and delay, with stakeholders awaiting clarity on pivotal reforms like the DPDP Rules, and other regulations.

Passed in 2023, many hoped for swift implementation with clear rules for stakeholders.

• Yet, over a year later, the rules are still awaited, raising doubts about the law’s future.

This delay reflects a broader trend, as seen with the Digital India Bill, which shifted its focus from sweeping reforms to sector-specific regulations.

India’s tech policy remains uncertain, with delays expected to shape the narrative for 2025 and beyond.

• IT rules amendment, which proposed measures to combat deepfakes, were shelved as the government deemed existing laws adequate.

• Another much-awaited, the Broadcasting Bill 2024 bill, which aimed to redefine news influencers and OTT broadcasters, was abruptly withdrawn

Surprisingly, stakeholders were even asked to return the circulated copies!

Onto media now, 2024 also saw platforms like Wikipedia and Telegram come under government scanner.

• Wikipedia faced allegations of bias and misleading content, with reports of government notices—though Wikipedia denied receiving them.
• Telegram was investigated for facilitating illegal activities, and a probe intensified after its CEO’s detention in France.

Go deeper

It's a not-so-great end to the year for the likes of Cars24 and Spinny.

The pre-owned cars market is expected to enter the slow lane after the Finance Minister Nirmala Sitharaman-led Goods and Services Tax (GST) Council decided to increase the tax rate on used cars to 18%.

• While the organised players brace for impact, they have urged policymakers to take steps that further the growth in this segment, and not otherwise.

To be sure, the revised tax rates only apply to vehicles bought by businesses and to the value that represents the margin of a supplier.

Experts say the new tax policy may disproportionately hurt both the unorganised and organised sectors.

• Spinny and Cars24 have already faced challenges in scaling over the past few years, partly due to the stiff competition from the unorganised markets. 

The increased tax will raise operational costs for businesses engaged in B2B sales like Cars24 and Spinny.

The impact of the new GST rate is expected to be more pronounced in India’s nascent EV sector.

• Analysts say the increased tax may hinder the adoption of new EVs, which already suffer from poor resale values.

Having said that, a notable impact on the used EV market is unlikely, given its small scale.

Go deeper

It’s not a sweet deal for those who love to enjoy a bucket of caramel popcorn while catching a movie on the big screen.

• Caramel popcorn is likely to get expensive now with a higher GST of 18%. 

However, there is little clarity on whether caramel popcorn sold loosely in cinemas will attract higher GST or not.

• While exhibitors await clarity, higher GST for caramel popcorn is likely to impact 0.3% of the total sales of PVR Inox. 

The price hike is expected to be passed on to consumers, who will have to shell out Rs 10-15 more for caramel popcorn.  

Find out more.

Indian-American tech leader Sriram Krishnan has been appointed Senior Policy Advisor for AI by President-elect Donald Trump. Krishnan will shape AI policy to ensure U.S. leadership in the field.

Using Generative AI, fraudsters are now generating convincing, large-scale reviews and undermining trust in platforms like Amazon and Yelp. This has affected industries like e-commerce, healthcare, and home services.

India’s top founders and investors, through their tributes, remembered Epigamia co-founder Rohan Mirchandani, calling him the perfect son, father, husband, brother, and friend. 

• Rohan wasn’t just a founder; he was a changemaker, said Verlinvest’s Arjun Anand. 

The sudden passing of 42-year-old Mirchandani due to a cardiac arrest has shaken the Indian startup community, with many urging entrepreneurs to prioritise health and wellness as they navigate stress and uncertainty.

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