Once a driving force behind the growth of the country’s economy, India’s middle class is struggling with a severe crisis. Saurabh Mukherjea, the founder of Marcellus Investment Managers, sounded a warning during his podcast with Bharatvarta when he said technological changes and automation are threatening the existence of middle-class jobs. “The middle class is coming under pressure, becoming a casualty of automation and technological change,” Mukherjea observed.
The warning signs are all there. Sales of fast-moving consumer goods (FMCG) and entry-level cars have fallen. Jobs in India’s IT service sector show no growth, nor has campus placement for engineers taken place. Automation and artificial intelligence (AI) threaten traditional jobs, mostly within clerical and supervisory levels. Mukherjea warned that unless meaningful strategies are devised, AI would become a critical “middle-class job killer”.
Economic trends exacerbate the problem. Corporate earnings in Q2 FY25 recorded their steepest drop in 20 years, barring global crises like the 2008 financial meltdown. Meanwhile, household debt has surged, with net savings as a share of GDP plummeting to a 50-year low. RBI data indicates rising unsecured loans are tightening disposable incomes, leaving families financially vulnerable.
Jobs for India’s middle-class will disappear, claims Wipro chairman
The consumption patterns reflect the distress. Urban spending has slowed, with FMCG giants such as Nestlé India and Hindustan Unilever reporting reduced growth. Nestle MD Suresh Narayanan attributed this to a “shrinking middle class,” while Hindustan Unilever CEO Rohit Jawa noted declining urban demand, especially in big cities. Wipro chairman added: “Some jobs will disappear”.
The crisis is more economic and political. Mukherjea argued that electoral focus on underprivileged groups has relegated the middle class to an “orphaned child” of policy-making. Immediate action is required to mitigate the challenges. He pleaded for mission-mode initiatives for dealing with economic and technological threats.
India’s middle class is at a juncture, where the future and stability are balanced.
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