For a demographic so central to India’s economic engine, the urban middle class today finds itself in a quiet but unmistakable crisis. Not one of protest or collapse, but of slow, grinding erosion—masked by sedans, smartphones, and social media selfies. It’s a class that has powered India’s growth and aspirations, but now finds itself squeezed from both ends: stagnant incomes on one side, rising lifestyle costs on the other.
The alarm bell was rung recently by investment banker and finfluencer Sarthak Ahuja, who stirred widespread debate with his viral LinkedIn post bluntly titled, “₹70 Lakh p.a. is the New Middle Class.” Ahuja broke down how a seemingly high salary—₹70 lakh per annum—leaves little room for actual wealth creation after taxes, EMIs, and essential living expenses in a metro city like Mumbai or Bengaluru. His key message: think twice before signing up for a housing loan.
But Ahuja isn’t alone. A wave of middle-class professionals, data scientists, and investors is now exposing what they call “a well-dressed decline” — and urging the salaried class to wake up before it’s too late.
Credit as Comfort, Status as Survival
Ahuja’s financial snapshot was stark. After taxes, a ₹70 lakh salary leaves around ₹4.1 lakh per month. Subtract ₹1.7 lakh for a home loan EMI, ₹65,000 for a car loan, ₹50,000 in school fees, and ₹15,000 for domestic help—and you’re left with ₹1 lakh for groceries, fuel, insurance, medical bills, entertainment, and saving for the future. At that rate, there’s nothing left at the end of the month. No retirement fund. No emergency cushion.
Yet, this isn’t just about numbers. It’s about mindset.
Monish Gosar, a Mumbai-based data scientist, puts it even more bluntly: “Banks didn’t trap us. They offered the rope. We tied the knots.” His viral critique is scathing, not of policy or the banking system, but of the mindset that equates consumption with success. In his view, the real threat isn’t inflation, but the belief that every raise deserves a lifestyle upgrade. “We let Instagram dictate our financial goals. We ignored the math,” he writes.
Gosar’s friend, earning ₹15 lakh annually, bought a new car on EMI. When asked why he didn’t buy a used one, the answer was simple: “I deserve it.” That single phrase, Gosar says, is the cornerstone of middle-class decline.
A Well-Dressed Decline
Ashish Singhal, CEO of PeepalCo, adds data to the emotion. In his widely circulated post, he noted that for the ₹5 lakh–₹1 crore salary segment, income growth has crawled at a compound annual rate of just 0.4% over the past decade. Meanwhile, food inflation alone has surged 80%, and real estate prices in metros have more than doubled. In real terms, purchasing power has nearly halved.
Still, people continue to post vacation photos, buy luxury phones, and upgrade cars. How? Credit. “This isn’t a collapse,” Singhal writes. “It’s a quiet erosion.” Credit card debt in India has reached ₹2.92 lakh crore. Personal loans have grown 75% in four years. But savings? Nearly vanished.
Investor Saurabh Mukherjea estimates that 5–10% of India’s middle class is already in a debt trap, not building assets but preserving appearances. The bigger worry? They’re doing it in silence. “The middle class rarely protests, agitates, or even acknowledges its decline,” he says. There are no bailouts, no subsidies, and no collective voice.
Middle-Class Burnout: Quiet, Personal, and Widespread
Despite criticism that Ahuja’s post exaggerated the situation by assuming elite choices—a ₹3 crore house, a ₹20 lakh car—many professionals resonated with the core insight: life in metro India is becoming unaffordable, even for high earners.
Not everyone agreed. Some users called the analysis “pompous” and “tone-deaf,” pointing out that not all middle-class families spend this way. “You can always redefine middle class,” one user wrote. “But ₹70L not being enough? That’s hard to digest.” Still, most agreed on one thing: inflation, lifestyle pressure, and the aspiration trap are real.
The phrase “I deserve it” has become the psychological trigger that justifies EMIs and splurges. The problem isn’t spending—it’s unchecked entitlement. In a world where status is visual, lifestyle becomes performance. A ₹10 lakh car is no longer a utility—it’s identity. A high-end phone isn’t a tool—it’s validation.
From Aspiration to Accountability
Gosar and Singhal don’t deny systemic issues: job insecurity, wage stagnation, and rising costs. But their rallying cry is different: Wake up. Be smarter. Get real. Start with self-awareness. Draw the line between needs and wants. Delay gratification. Stop upgrading your lifestyle with every appraisal.
India’s middle class has always prided itself on resilience and discipline. But those same traits, when paired with silence and status anxiety, can lead to financial ruin. “Stop playing the victim. Start playing smart,” Gosar says.
If the salaried class is to survive—not just in numbers, but in dignity and peace—it must evolve. This isn’t a call to abandon ambition, but to redefine success. Not in square footage or car models, but in financial freedom, time, and health.
Because sometimes, the best thing you can do with your raise is… nothing at all.
