A hidden debt crisis is silently wrecking the dreams of India’s middle class

Link: https://scroll.in/article/1082346/a-hidden-debt-crisis-is-silently-wrecking-the-dreams-of-indias-middle-class

According to income tax data and other reports, the average income for middle-class earners has stayed around Rs 10.5 lakh per year for more than ten years now. Adjusted for inflation, the real value of their earnings has dropped sharply.

The consumer purchasing power of this income group has fallen by about one-third over the past decade. This means people can afford much less today than they could ten years ago, even though their salaries have stayed the same. As a result, many families are cutting down on essential expenses like healthcare, education and daily consumption just to balance their monthly budgets.

The cost of living has also gone up significantly in this period. The prices of basic goods and services such as fuel, medical care, and school fees have risen faster than wages. For a section of society that once believed in saving and gradually improving their lifestyle, just making ends meet has become a struggle.