For a demographic so central to India’s economy, the middle class today finds itself in a quiet crisis — not one of rebellion or collapse, but of slow erosion. The symptoms are everywhere: rising credit card debt, flatlining income growth, and the normalization of financial stress. It’s not that the middle class is failing; it’s that it’s exhausted — crushed under the weight of expectations, EMIs, and a curated illusion of prosperity.
Mumbai-based data scientist Monish Gosar put it bluntly in a recent viral post: “Banks didn’t trap us. They offered the rope. We tied the knots.” His critique is personal and piercing, targeting not just economic policy or corporate structure but the very mindset that equates consumption with success. According to Gosar, the real threat isn’t inflation, but our unexamined belief that every promotion deserves a bigger car, every bonus a gadget upgrade, and every swipe a little validation.
Credit as Comfort, Status as Survival
India’s middle-income households are increasingly relying on credit to sustain a lifestyle they believe they deserve — or must project. PeepalCo CEO Ashish Singhal calls it “a well-dressed decline.” His own viral post highlighted the stagnation in incomes — just 0.4% CAGR for the ₹5L–₹1Cr segment over the past decade — even as food prices surged 80%. In real terms, purchasing power has almost halved. But if you scroll through Instagram, you wouldn’t know it. People are still flying, still upgrading phones, still paying EMIs — they’re just skipping savings, delaying doctor visits, and thinking twice before checkout.
This isn’t a collapse. It’s a quiet erosion masked by selfies and sedans.
The System Doesn’t Need to Coerce When We Volunteer
The psychology behind this is powerful. In a world where status is visual, lifestyle becomes performance. A ₹10 lakh car isn’t just transportation; it’s a statement. A high-end phone isn’t a tool; it’s identity. Gosar recalls a friend who, earning ₹15 lakh annually, bought a new car on EMI. When asked why not buy used, the friend simply said, “I deserve it.”
That phrase — “I deserve it” — is the cornerstone of middle-class decline. It shifts financial decisions from logic to entitlement. And when entitlement meets easy credit, the results are devastating. India’s personal loans have soared by 75% in four years. Credit card debt has ballooned to ₹2.92 lakh crore. Yet, Gosar insists this isn’t systemic coercion; it’s self-inflicted: “We let Instagram dictate our financial goals. We ignored the math.”
Squeezed from Both Ends, and Still Smiling
Investor Saurabh Mukherjea believes 5–10% of India’s middle class is now stuck in a debt cycle — not to build assets but to preserve an image. Worse, they’re doing it without protest. Unlike other economic classes, India’s middle class rarely organizes, agitates, or demands reform. Singhal calls this “the biggest scam no one talks about” — the quiet squeezing of a demographic with no fallback, no subsidies, and no safety net.
And the future looks bleaker. Automation and AI are threatening traditional job security. Real estate and education costs are rising faster than income. And the salaried path — once considered India’s safest bet — is now a gamble with little upside and no parachute.
A Wake-Up Call, Not a Lecture
Gosar’s and Singhal’s posts struck a nerve because they weren’t policy rants. They were wake-up calls. Neither denies systemic flaws — from wage stagnation to lack of social protections — but both argue that the first step is self-awareness. Stop playing victim. Start playing smart. Recognize the difference between needs and wants. Delay gratification. Choose financial freedom over lifestyle inflation.
India’s middle class has long been admired for its work ethic and resilience. But those same virtues can turn into liabilities when paired with silence and conformity. It’s time for a cultural shift — not away from aspiration, but towards sustainability. Not away from ambition, but towards accountability.
If the middle class is to survive — not just in numbers but in health, wealth, and dignity — it must stop living like it’s rich and start thinking like it’s wise.
