Indian Companies Struggle as Wages Rise

Despite its massive population, India faces worker shortages in many sectors. Rapid growth means businesses must offer higher wages to keep employees
Chief Executive Officer of India's Infosys Technologies, Kris Gopalakrishnan addresses a press conference at the Infosys campus in Bangalore, 11 January 2008. DIBYANGSHU SARKAR/AFP/Getty Images

In a country with over 1 billion people, a worker shortage shouldn't be high on the list of concerns for corporate executives. But India, with the world's second-largest population, has a labor shortage in many industries. Even as Mumbai stock market investors suffer whiplash from the global subprime meltdown and worries about recession in the U.S. (, 1/22/08), Indian companies are finding they need to boost salaries in order to attract or retain employees.

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