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A LinkedIn post by PeepalCo CEO Ashish Singhal has ignited widespread debate after he called out what he described as the “biggest scam no one talks about” the growing financial strain on India’s middle class. In a sharply worded post, Singhal pointed out the stark contrast between rising expenses and stagnant incomes, arguing that middle-income Indians are quietly shouldering the burden of economic stress with little acknowledgment or support.

“Over the past 10 years: The group earning under Rs 5L saw a 4 per cent CAGR. Rs 5L–Rs 1Cr income group has seen just 0.4 per cent CAGR. Food prices? Up nearly 80 per cent. Purchasing power? Cut almost in half. But spending? Up, funded by credit,” Singhal wrote.

His comments struck a deep chord, resonating with many who feel the pressures of rising living costs, growing debt, and limited financial progress. While the middle class still projects a semblance of stability—traveling occasionally, upgrading gadgets, and meeting EMIs—Singhal argues that this is a façade masking deeper financial distress. “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,” he noted.

The crux of the issue, he says, is that the middle class is increasingly leaning on credit to maintain an aspirational lifestyle. With no government bailouts or systemic support, they are being squeezed between rising costs and flatlining incomes.

Internet Reacts

The post sparked intense discussion online. While many users echoed his concerns, some pointed the finger back at corporate leadership. “I am picking this signal consistently from a wide variety of sources. The middle class is quietly getting squeezed from both sides. But it's also its own fault for choosing to stay quiet and naively hoping that just staying the course of 9 to 9 jobs, home loans and car loans will improve the situation. The middle class's guilt is that it's taken too much on its own self and asks too little from the government. As they say, excess of nothing is good - being excessively conforming and hard working - has led to being stuck between the devil and the deep sea,” wrote one of the users.

Despite projected growth in numbers, rising from 31 per cent of India’s population in 2021 to an expected 60 per cent by 2047, the financial health of the middle class is in decline. While households manage to maintain appearances, it’s often at the cost of savings, health, and long-term security.