India’s Sustainability Surge: Are workers being left behind?

Sustainability on the Rise

Indian businesses have made a significant leap in sustainability efforts, with over 90% increasing their investments in eco-friendly initiatives compared to the previous year, according to a recent report by the Confederation of Indian Industry (CII). This surge highlights the growing acknowledgement of sustainability as a core aspect of business strategy, driven by global climate goals and domestic policies. From renewable energy adoption to waste management programs, Indian companies are embracing sustainable practices. However, while businesses strive to meet environmental goals, the economic realities of the labour market, particularly concerning minimum wages, paint a contrasting picture.

The Role of Workers in Sustainability

At the heart of sustainability are the workers implementing these changes. For many, especially those earning at or near the minimum wage rate, the benefits of these investments remain out of reach. India’s Minimum Wages Act of 1948 was enacted to protect workers from exploitation and ensure they can afford a basic standard of living. Yet, the current minimum wages vary widely across states and industries, often failing to keep pace with inflation and rising living costs. For instance, in states like Uttar Pradesh, the national minimum wage stands at approximately ₹176 per day, or ₹4,576 monthly. This figure barely covers essential needs, let alone allows workers to participate in sustainable living practices, such as buying eco-friendly products or reducing dependency on cheaper, harmful alternatives.

Bridging the gap 

As businesses align themselves with sustainability goals, many advocate for a national minimum wage law to create uniformity and ensure fair compensation across sectors. Experts argue that linking corporate sustainability efforts to social equity, including fair wages, could have a far-reaching impact. The government is under growing pressure to revise the Minimum Wages Act and establish a realistic minimum wage, particularly as India aims to balance its ambitious economic growth with inclusive development. Advocates argue that a higher minimum wage rate would not only reduce poverty but also empower workers to contribute more meaningfully to sustainability goals. Such changes could complement the efforts of Indian businesses, ensuring that the workforce driving these initiatives also benefits from them.

This interplay between sustainability and minimum wages highlights the broader challenge India faces: fostering an economy that is not only environmentally sustainable but also socially inclusive. Could a revised national minimum wage law be the key to achieving this balance? Have a look at current Minimum Wages in India.