The wages India are predicted to rise 14.4 percent during this year, 2008, due to the demand for talent that has been created by economic growth.  This is the fifth consecutive year of double-digits for better wages. India is well known for their keen, talented, educated and English-speaking employees in the IT service sectors and this is quickly making labor wages rise.  Many companies around the world are outsourcing their IT and customer service jobs to India and for good reason; most workers who take these jobs not only save the parent company money, they are unfailingly courteous and polite to those they are required to deal with.
In 2007, Indian professional salary wages got an average increase of 18.7 percent and the salary wages run between Rs 494,388 ($11,570.01 USD)-Rs 1,001,970 ($23,448.79 USD). Among the hotel manager wages, bartender wages, and chef wages are around Rs 162,782 ($3809.54 UDS). The other salary wages, such as private practices and firms the wages are 312,013 Rupees, which is $7,301.94.  College and university wages pay 193,284 Rupees or  $4523.37, hospital employees in India make around Rs 190,134 ($4449.65 USD) and the self-employed make around Rs 211,244 ($4943.68 USD).  Most families can live well on such labour wages and if the economy continues to improve, the standard of living in India will be very good indeed!
However, with a currency that is getting stronger and wages that are rising are threatening to destroy India’s cost advantage in the global market.  Companies are beginning to be forced to economize and innovate their products in order to keep their competitive edge. The rupee is up twelve percent this year against the American dollar and has risen to its strongest in almost ten years. This has caught executives off-guard, cutting into the services and textiles markets in India.  Business plans have had to undergo significant modification due to these factors and although a healthy, growing economy is always welcome there are some adjustments that must be made. 
India has legislated minimum wage requirements but they vary according to occupation, ranging  from the lowest figure of Rs.25 a day to its highest of Rs 134.  This new minimum wage law has been hailed as an effective tool in fighting poverty, although it is agreed that a more suitable minimum wage would be Rs.215 per day.  As of now, a domestic worker makes Rs.1600 per month and is forced to have an additional job to make ends meet.  This is true even if another person in the household is employed at minimum wage.   India is not the only country dealing with this type of employment and wage problem.  The conflict of supplying workers with a living wage while maintaining corporate financial health is common in many nations and no one has found the ideal balance as of yet.
Many are worried that increased wages will drive away the overseas companies that outsource many of their jobs to India.  Low overhead is the leading reason cited for outsourcing, particularly in Information Technology where employees command very high wages elsewhere in the world.  India is the number one destination for outsourcing due to high quality workers and low wages but this may change if there’s no way found to maintain those qualities while giving a decent living wage.