Any body has to start with a lower salary only, but after induction - improving skill levels the increments are to be given to upgrade, but this do not happen, and only by flattering u r boss u will be given growth.
All this leads to incompetence and the organisation will find difficult to perform and performance, and profitability is effected.
And to cover the performance and improve profitability,overqualified people are parachuted from outside,leading to demoralisation and further loss of market.
All these things are happening in the Auto industry of our home grown sector, and Japanese and Koreans, US, and others are taking advantage, and the pay for the skill levels continue to be low.
Unless the manufacturing sector grows their won't be demand for skills - higher payments follow.
If some section of our society keeps breeding like mosquitoes then all development , jobs creation will be null and void by every increasing population. High time to have 2 children policy.
Great need also to retire all govt. servants on army pattern where fighter Jawan retires at 40 i.e. after serving 15-20 years. This will bring efficiency, new skill as well as reduce corruption. Younger generation will get chance to contribute in nation building whereas retired can earn of their own, as they will be trained in a better way.