India’s middle class is caught in a quiet financial crisis, balancing rising living costs with stagnant wages while maintaining an illusion of stability. Although many still travel, buy gadgets, and keep up with EMIs, the reality is a growing dependence on credit and mounting financial stress.
Ashish Singhal, a Bengaluru-based CEO, sparked a conversation on LinkedIn, calling out what he describes as “the biggest scam no one talks about: middle-class salaries.” His post sheds light on a decade of wage stagnation for those earning between ₹5 lakh and ₹1 crore annually, with income rising at just 0.4% CAGR. Meanwhile, food prices have soared nearly 80%, and inflation continues to erode purchasing power.
Behind the Aspirations, a Hidden Struggle
“This isn’t a collapse,” Singhal writes. “It’s a well-dressed decline.” He points out that while consumption appears strong, it’s largely funded by debt rather than income growth. Credit card usage and EMI burdens have surged, while real wage gains remain flat.
India’s middle class 31% of the population in 2021 and projected to rise to 60% by 2047 is increasingly vulnerable. While the poor receive government support and the rich grow wealth through investments, the middle class is left to absorb economic shocks with little safety net. Rising education fees, healthcare costs, and fuel prices only add to the burden.
“The poor are being supported. The rich are scaling. The middle class is just expected to absorb the shock in silence,” Singhal asserts. He stresses that the middle class is not merely a vote bank or a tax contributor but the true engine of India’s economy one that is now faltering.
