The Indian middle class has long been celebrated as the engine of growth — aspirational, resilient, and quietly holding up the country’s consumption story. But beneath the surface of smartphones, air travel, and EMI-backed lifestyles, a deeper crisis is brewing.
In a sharp and sobering take, CoinSwitch cofounder Ashish Singhal calls out what he terms “the biggest scam no one talks about” — the slow, silent, and systematic erosion of middle-class financial health.
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The biggest scam no one talks about?
Middle-class salaries.
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
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.
Meanwhile:
- AI is quietly threatening white-collar jobs
- Political attention stays on welfare funding
- The ultra-rich have grown 7x in a decade
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.
It’s time we start talking about this group
Not as a vote bank or a spending class,
But as a segment that’s powering the economy, yet getting squeezed out of it.
Do you think it’s just an income issue, or even a money management issue?
How people reacted?
"This is not just India, but a global phenomenon. The middle-class salary crisis isn’t just India’s problem. It’s hitting even the developed nations. Sometimes, I wonder, what will come at the extreme of it?
If this isn’t addressed soon, it will lead to reduced consumption from the Middle-class. The middle class in India (and globally as well ) is a key driver of all consumption, contributing significantly to all economy and the value of "The money". Reduced consumption from the middle class could slow economies, weaken currencies, and even dent the ultra-rich’s wealth. The middle class drives growth. That money won't matter if the economies collapses and then currency loses it's value as a chain reaction.
I have even been thinking of a solution for this problem. ( I am so unemployed, I have nothing better to do... ).
I feel the rich shouldn't be so selfish and greedy about the money, rather give out most of the wealth, Embracing the `effective altruism`. I am not saying people shouldn't scale and grow more revenue. I am saying "Earning to give". If the rich could embrace ‘earning to give,’ sharing wealth to stabilize the system for the collective good. It could fix this issue. But who we are kidding?" said one user.
In a sharp and sobering take, CoinSwitch cofounder Ashish Singhal calls out what he terms “the biggest scam no one talks about” — the slow, silent, and systematic erosion of middle-class financial health.
Check full text here
The biggest scam no one talks about?
Middle-class salaries.
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
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.
Meanwhile:
- AI is quietly threatening white-collar jobs
- Political attention stays on welfare funding
- The ultra-rich have grown 7x in a decade
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.
It’s time we start talking about this group
Not as a vote bank or a spending class,
But as a segment that’s powering the economy, yet getting squeezed out of it.
Do you think it’s just an income issue, or even a money management issue?
How people reacted?
"This is not just India, but a global phenomenon. The middle-class salary crisis isn’t just India’s problem. It’s hitting even the developed nations. Sometimes, I wonder, what will come at the extreme of it?If this isn’t addressed soon, it will lead to reduced consumption from the Middle-class. The middle class in India (and globally as well ) is a key driver of all consumption, contributing significantly to all economy and the value of "The money". Reduced consumption from the middle class could slow economies, weaken currencies, and even dent the ultra-rich’s wealth. The middle class drives growth. That money won't matter if the economies collapses and then currency loses it's value as a chain reaction.
I have even been thinking of a solution for this problem. ( I am so unemployed, I have nothing better to do... ).
I feel the rich shouldn't be so selfish and greedy about the money, rather give out most of the wealth, Embracing the `effective altruism`. I am not saying people shouldn't scale and grow more revenue. I am saying "Earning to give". If the rich could embrace ‘earning to give,’ sharing wealth to stabilize the system for the collective good. It could fix this issue. But who we are kidding?" said one user.
