New Delhi, Oct. 20 -- India Inc is bracing for muted salary hikes in 2027 as rising costs, geopolitical uncertainty and a sluggish job market squeeze compensation budgets, with bigger rewards likely to be reserved for top performers, according to hiring experts.

Higher crude oil prices amid the West Asia conflict, inflation that surged to a two-year high in September, the Reserve Bank of India's rate increase and changing attrition trends are converging to complicate salary decisions. With consumer demand under pressure and businesses becoming more cautious about spending, companies are likely to exercise greater discipline in compensation budgets, even as they compete to retain critical talent.

Consulting firms Deloitte and WTW (Willis...