India's middle class is bleeding quietly: Bangalore CEO says, 'EMIs, inflation, no savings are crushing them'
A searing LinkedIn post by
PeepalCo
CEO
Ashish Singhal
has ignited fierce debate over what he calls the "biggest scam no one talks about"—the
financial pressure
facing India's middle class.
'Over the past 10 years: The group earning under ₹5L saw a 4% CAGR. ₹5L–₹1Cr income group has seen just 0.4% CAGR. Food prices? Up nearly 80%. Purchasing power? Cut almost in half. But spending? Up, funded by credit,' Singhal wrote.
His words hit a nerve. The middle class, he argues, is absorbing
economic shocks
silently—without complaints, without support.
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Indian middle class salary is 'well-dressed decline' hidden in plain sight
Despite rising costs of living and almost static
wage growth
, middle-class Indians continue to live what looks like a stable life. They still take holidays, upgrade their smartphones, and pay their EMIs. But beneath the surface, Singhal claims, the reality is bleak.
'This isn't a collapse. It's a well-dressed decline. You're still flying once a year. Still buying a phone. Still paying EMIs. But you're also skipping the savings. Delaying the doctor visit. Doing the mental math in every Zomato checkout,' he observed.
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Behind this illusion of progress lies a heavy reliance on credit. As salaries stagnate, credit cards and loans are filling the gap. Financial stress is rising—but it remains largely invisible.
India's middle class gets no bailouts, no support. Just quiet pressure.
Singhal's post has gained traction because it names a widely felt but rarely discussed issue. Middle-income earners—those in the ₹5 lakh to ₹1 crore bracket—have seen wage growth crawl at just 0.4% annually. Meanwhile, essential expenses—food, education, fuel, healthcare—have soared.
He warns that while the poor benefit from welfare and the rich expand through investments, the middle class is left to shoulder the load.
'The poor are being supported. The rich are scaling. The middle class is just expected to absorb the shock, in silence. No complaints. No bailouts. Just inflation, EMIs, and quiet pressure,' he wrote.
Online Reactions: Agreement, frustration, and some pushback
The post struck a chord online. Many LinkedIn users echoed Singhal's sentiment. One founder commented, 'The middle class is quietly getting squeezed from both sides. But it's also its own fault for choosing to stay quiet and naively hoping that just staying the course of 9 to 9 jobs, home loans and car loans will improve the situation.'
Another CEO asked Singhal to reflect on his own pay practices: 'Good one. But, as CEO, what was the pay rise you gave to your employees vis-a-vis yours? That should be interesting to know.'
Some users felt nothing would change. 'Crying on any platform won't make any difference. India was moving on like this and will continue like this,' one commenter wrote. Another added, 'Salary alone can't make anyone wealthy anywhere in the world.'
Yet others offered a more optimistic view. One LinkedIn user shared that his income had grown and his living standards had improved. Still, the overwhelming response reflected unease.
This isn't the first time someone has flagged the growing stress on the Indian middle class. Last month, investment banker Kanishk Kar shared a similar warning on LinkedIn.
'Incomes haven't kept up with inflation… The cost of basics — food, rent, fuel, school fees — is rising faster than wages. Every month, that 'buffer' money is getting thinner,' Kar wrote.
He added, 'The Indian middle class is not lazy. Not entitled. Not unambitious. They're just running on a treadmill that's speeding up while their shoes are wearing out. If we want a stronger India, we need to stop treating them like they're fine. Because they're not.'
A shrinking middle-class: Big numbers, small gaiins
India's middle class, which made up 31% of the population in 2021, is expected to rise to 38% by 2031 and 60% by 2047. But despite this growth in numbers, the class's financial well-being is eroding.
Households are managing lifestyle expenses—but often at the cost of savings, insurance, and health. Aspirational living is funded not by rising income, but by rising debt.
Behind the numbers lies a sobering truth: India's middle class—the backbone of its consumer economy—is under stress, silently slipping into a less secure future
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