'Maggi-level vanishing act': Investment banker says India's middle class is losing real purchasing power

India’s middle class is running faster just to stay in place. The rent climbs, fuel bills swell, school fees quietly balloon, and by month’s end, that once-reliable buffer of savings has all but vanished.

Kanishk Kar, an investment banker, sums it up plainly: “Incomes haven’t kept up with inflation.” Since 2016, consumer inflation has averaged around 6%. But salary growth for many white-collar roles? Just 3–4%. 

The squeeze is silent but relentless.

"Real purchasing power? Quietly disappearing like a pack of Maggi in a hostel kitchen," Kar writes on LinkedIn — and for millions of middle-class Indians, it’s a metaphor that stings with familiarity.

Kar argues that the financial pressure isn’t just about higher bills — it’s about a diminishing return on effort. “The result? The middle class is footing the bill — but isn’t getting much back.”

Every rung of the aspirational ladder now comes at a steeper price. “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.

And it's not just homes. “Wanna send your kid to a decent school? Congrats. You’re now paying more for ‘activity fees’ than you did for your entire MBA.”

Kar captures the mood of a class chasing dreams that feel increasingly out of reach: “The dream of upward mobility is still there — just hidden behind a paywall.”

Middle-class Indians are being pushed to take control of their financial futures — with little help.

“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.”

The consequences of failure are personal and punishing. “There’s no safety net. Only a tightrope. One medical emergency = 5 years of savings, gone.”

Kar doesn’t offer a silver bullet but lays out broad strokes: “Financial literacy at scale. Policy that doesn't ignore the middle 60%. Less dependence on salaried income, more on assets. And maybe — just maybe — a government that rewards savers, not just spenders.”

Cultural strategy firm Folk Frequency paints a more complex picture. This middle class is rising from generational poverty, entering formal jobs, and driving new consumption — from fine dining to digital literacy. But as founder Gayatri Sapru warns, “the gap between culture, data, and business strategy” continues to leave India’s true middle-class story untold — and underserved.