The concept of the middle class in India has been a topic of debate for decades, with the definition becoming increasingly blurred due to economic growth, rising aspirations, and widening income gaps. The traditional notion of the middle class referred to individuals with modest earnings, stable jobs, and limited luxuries. However, with urban salaries on the rise and social media influencing lifestyle choices, many individuals with high incomes are still identifying as middle class.
Recently, a podcast sparked a discussion on whether an annual income of Rs 70 lakh can be considered middle class. Radhika Gupta, CEO of Edelweiss Mutual Fund, argued that such an income does not fit the category and instead belongs to the upper class. According to her, the actual income range for the middle class in India is between Rs 5 lakh and Rs 8 lakh annually. Gupta emphasized that applying a single income definition to a country of 1.4 billion people is unrealistic, with about 100 million Indians living on less than $2,000 per year.
Gupta noted that many high earners in urban India still identify as middle class due to a psychological attachment to the label, which is often rooted in their family background. However, in financial terms, this identity no longer reflects reality. Despite higher earnings, many individuals experience dissatisfaction due to urban living costs, rising rents, and lifestyle inflation. Social media has also created a culture of comparison, where individuals feel pressure to maintain a certain online appearance and lifestyle.
Gupta cited the example of a young professional who felt the need to work long hours to maintain their fitness, take vacations, and keep up with online appearances. This, she said, is part of a larger competition driven by digital exposure. The middle-class identity has become a cultural habit, but it is essential to recognize that it no longer reflects the financial reality of many individuals in India. As the country continues to grow and evolve, it is crucial to redefine what it means to be middle class and to acknowledge the changing economic landscape. By doing so, individuals can better understand their place within the economy and make more informed financial decisions.