Is Indian Middle Class In Deep Danger? Here Is What Investment Banker Saurabh Mukherjea Had To Day On The Looming Crisis

The Indian middle class has been a hot potato topic for a long time; this discussion only burgeoned in importance in the past years or so. The discussion of the purported middle class and its well-being only increased after the Union Budget in July 2024.

The Middle Isssue

Many accused FM Sitharaman and the government of neglecting its taxpayers, particularly the middle class.

The most latest budget for FY26, presented on February 2025 looked to resolve issues and alay fears of this class.

Stagnant Wages

But, is it the elixir that would solve all those issues? Maybe not.

Saurabh Mukherjea, Founder and Chief Investment Officer at Marcellus Investment Managers shared his thoughts and looked into concerns, while underscoring the problems in the underbelly of the Indian economic juggernaut.

Mukherjea focused on one biggest issues plaguing the global workforce. This issue concerns lack of wage growth or stagnant income.

According to Mukherjea, middle-class earnings have stagnated at around Rs 10 and a half lakhs per year for the last 10 years. In addition, he also claimed that middle-class incomes have halved in the last 10 years.

He further added that people want to live a better life, but in inflation-adjusted terms, that means the middle class has had to load up on a lot of debt.

AI And Automation

Beyond the larger problem of income stagnation, the investment banker also looked at other crucial avenues that define the danger in the current situation.

For Mukherjea, job losses to automation, in addition to a looming cyclical slowdown is also a cause of concern.

These concerns come to the fore at a time when the artificial intelligence or AI, system that has captured the imagination of many has also stoked fear in many, who may stand to lose their jobs because of automation, particularly with the spread of AI.

On the issue Mukherjea said, "The simplest example being a teller in a bank… first layer of automation was the ATM, second layer will be a bot gradually replacing the teller.” He adds that the next wave—driven by generative AI—will be even more disruptive, both in manufacturing and white-collar sectors."

This once again may disproportionately affect middle-income jobs, thereby affecting the larger middle class.