A viral LinkedIn post by Bengaluru CEO Ashish Singhal has exposed the harsh economic reality facing India’s middle class, calling it “the biggest scam no one talks about.”
The Shocking Numbers
Singhal’s analysis reveals alarming trends in middle-class economics over the past decade:
- Income under Rs 5 lakh: Only 4% annual growth
- Income Rs 5 lakh to Rs 1 crore: Meager 0.4% annual growth
- Food prices: Surged nearly 80%, effectively halving purchasing power
- AI sector growth: Seven times faster than middle-class salaries
Despite income stagnation, middle-class families have not given up their lifestyle, attributing the lack of savings to healthcare expenses as credit is used along with EMIs. This concept was noted by Singhal who called it “well-equipped descent.” People from this class spend on vacations from time to time, have new phones, and continue to pay EMIs on most phones while having depleting savings.
Unlike other classes who get the government’s attention during financial crises, this class copes with economic shocks patiently and without public sympathy or bailout funds.
Social Media Reaction
Responses to the post were mixed. One thing many seemed to agree to was the fact that the middle class is “squeezed from both ends.” Critics, on the other hand, claim the middle class does not act and opposes the dominant submission compliance and hyper conformity the workplace encourages.
This controversy is yet another pointer to the deepening concern over the widening gap of economic inequality in India and the growing burden of middle-class financial security in a high expenditure and low wage economy.
This blog post is for informational purposes only