The notion of what constitutes the “middle class” in India has sparked a heated debate, with many questioning whether an annual income of ₹70 lakh still falls within this category. According to the CEO of Edelweiss Mutual Fund, the answer is a resounding no, claiming that ₹70 lakh is, in fact, an upper-class income. She argues that the technical definition of middle class cannot be applied to such a high income, and that many Indians who earn in the top percentiles still identify as middle class due to their upbringing and “middle class psychosis.”
The CEO suggests that the actual middle class income range in India is significantly lower, ranging from ₹5-8 lakh per year. She emphasizes that applying a single average income to the entire population of 140 crore people is “meaningless,” as the per capita income varies greatly, with around 10 crore people earning $12,000-14,000 and over 100 crore living on less than $2,000 per year.
Social media has also played a significant role in shaping modern aspirations and dissatisfaction, amplifying financial anxiety and the perception of “not having enough.” The constant comparison on social media platforms has created a sense of competition, where individuals feel pressured to maintain a certain lifestyle, take vacations, and prioritize fitness, leading to a sense of inadequacy and financial stress. This has resulted in a situation where even high-income earners, such as those with salaries of ₹70 lakh, feel that they do not have enough.
The Edelweiss CEO’s comments highlight the need to reevaluate the concept of the middle class in India, taking into account the vast income disparities and the impact of social media on modern aspirations. The debate raises important questions about the definition of middle class, the effects of social media on financial satisfaction, and the need for a more nuanced understanding of income and lifestyle in India. Ultimately, the notion that ₹70 lakh is no longer considered middle class serves as a reminder that the concept of middle class is complex and multifaceted, and that it is time to reassess our understanding of this term in the context of modern India.