Are there companies in India which give a salary hike to their employees every time a price hike is announced in the state/country?

Dont know abt private companies. But central govt. Increases DA(daily allowance) every time here is hike in country. Currently DA is 100% of the salary. And if there is hike agn it will go to 110%

If you work for the State Government, Central Government or a Public Sector Company you would get what is called as a DA or Dearness allowance that is an inflation allowance in line with Consumer Price Index Changes.The hikes are modest   and usually are preceded by a Government Order which specifies the rate at which it will be given. On an average there would be a 3-5% hike adjusted two times a year going by historical http://data.It The same is subject to change and could be higher or nil depending on the Consumer Price Index.

Salary hike is more dependent on performance. more you achieve target, more bonus shall get. I mean if you achieve 110% of target, you are eligible for extra 10% of your performance bonus and like wise. Company do offer allowances for travel, accommodation and so. Its stays good if we focus more on our performance in company and get rewarded than worrying on price hike in country and thereby looking for same in salary.

No. However, there are few companies which increases salary every year to combat inflation irrespective of the performance of the employee. Regarding the case of decrease, there also would not be any such company.

In case of private companies salary hike is purely based on your success or performance and the way you impress your boss. So I don't find any private company increasing the salaries as there was a hike in price instead they would reduce them claiming that company is facing huge losses due to increase in the prices.But this is not the case for the ones who work in government agencies as government provide them a hike with an increased Daily Allowances (D.A) in most of the case even if government failed to do so they start protest and run to courts for an increase. which will never happen with Private companies.But in very rare cases reputed private companies like TCS, Wipro, etc., had provided salary hikes when there was a constant hike in prices.Thanks for A2A.

State and central government give component called DA Dearness Alliwance, which linked price induces. They are frequently increased.  Private sector normally does do this.