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According to Kanishk Kar, the financial strain stems from a declining return on investment rather than just increased expenses.
: According to Kanishk Kar, the financial strain stems from a declining return on investment rather than just increased expenses. (Photo Credits: X)
Just to stay put, the middle class in India is sprinting faster. By the end of the month, the once-dependable cushion of funds has all but disappeared as the rent increases, fuel prices rise, and school tuition subtly soars. Investment banker Kanishk Kar recently put it succinctly on LinkedIn: “Incomes haven’t kept up with inflation.” He adds that the average rate of consumer inflation since 2016 has been about 6 per cent. But do pay increases for a lot of white-collar jobs? Only 3–4 per cent, he claims.
Though silent, the crush is unrelenting.
“Real purchasing power? Quietly disappearing like a pack of Maggi in a hostel kitchen,” Kanishk Kar’s post on LinkedIn reads — and it’s a metaphor that reminds millions of Indian middle-class people of their own experiences.
According to Kanishk Kar, the financial strain stems from a declining return on investment rather than just increased expenses. “The result? The middle class is footing the bill — but isn’t getting much back,” his lengthy post also adds.
He further stated that the cost of climbing the aspirational ladder has increased. “Wanna buy a house? EMIs are up. Home prices are up. Rent is up. Even rents for 1BHKs in Tier-2 cities are breaking backs,” he writes on the social networking site.
And not only homes, but even education is becoming a big concern now. “Wanna send your kid to a decent school? Congrats. You’re now paying more for ‘activity fees’ than you did for your entire MBA,” Kanishk Kar states.
Kanishk Kar encapsulates the atmosphere of a class striving for goals that seem progressively unattainable: “The dream of upward mobility is still there, just hidden behind a paywall.”
With minimal assistance, middle-class Indians are being encouraged to take charge of their financial futures. “India’s middle class is being nudged — hard — to: Buy their own insurance. Invest their own money. Manage their own retirement. All without the tools, education, or support to do it well,” he writes.
He goes on to say that failure has repercussions that are both personal and penal. “There’s no safety net. Only a tightrope. One medical emergency = 5 years of savings, gone,” his post claims.
Moreover, Kanishk Kar sets out general guidelines rather than providing a magic bullet. “Financial literacy at scale. A policy that doesn’t ignore the middle 60%. Less dependence on salaried income and more on assets. And maybe — just maybe — a government that rewards savers, not just spenders,” his lengthy post ends.
- Location :
Delhi, India, India
