DELHI, NEW DELHI: The Indian government said on Wednesday that it has decided to reinstate an increase in inflation-linked pay for federal government employees and retirees, a move that could boost demand for products and services in an economy still reeling from the effects of COVID-19. Last year, the government halted all such increases due to a drop in revenue caused by the coronavirus.
The increase in federal government employee salaries is expected to cost the government some 344 billion Indian rupees (US$4.61 billion) every year.
(One US dollar equals 74.5670 Indian rupees)
(Aftab Ahmed and Manoj Kumar contributed reporting; Jason Neely edited the piece.)
Reuters is the source of this information./n
