Ashish Singhal, the Bengaluru-based Chief Executive Officer at PeepalCo, in a LinkedIn post flagged the unspoken truth of "middle-class salaries" in India.
While the cost of living has skyrocketed, the income growth for the middle class have stagnated over the last decade, bringing about a "well-dressed decline."
While maintaining appearances through credit, the middle class, according to Singhal, is quietly sacrificing savings and essential needs. Labeling it as the "biggest scam no one talks about," his LinkedIn post spotlights the silent pressure clearly through numbers.
"The group earning under Rs 5 lakh saw a 4% CAGR, Rs 5 lakh – Rs 1 crore income group has seen just 0.4% CAGR," said his post. This minimal income growth stands in stark contrast to the soaring cost of living, with food prices up nearly 80%, effectively cutting purchasing power almost in half. He highlights that spending is up, funded by credit.
Singhal describes this situation not as a collapse but a well-dressed decline. Pointing out the paradox, he said, "You're still flying once a year. Still buying a phone. Still paying EMIs. However, this facade hides a deeper struggle, as people are skipping the savings, delaying the doctor visit, doing the mental math in every Zomato checkout."
The pressure on the middle class is further complicated by external factors. Singhal notes that "AI is quietly threatening white-collar jobs, political attention stays on welfare funding, the ultra-rich have grown 7 times in a decade."
"The middle class is just expected to absorb the shock, in silence. No complaints. No bailouts. Just inflation, EMIs, and quiet pressure," he said in the post. Singhal identifies the irony that the middle class, a segment powering the economy, is getting squeezed out of it.
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