New Delhi
Is the middle class cost less? Is they ending the money? We are not saying this, but experts are giving some similar warnings. Saurabh Mukherjee of Marselus Investment Managers said in a long wide blog that Indian corporate profits are falter and the middle class is playing an important role in this crisis. He said that Diwali (Diwali) has recorded a huge decline in income growth of Indian companies since 2023, due to which there is a decrease in consumption and the reason is that the middle class Indians are ending the money.
India’s corporate profits are falter and may be the middle class at the root of this crisis. Marcelos investment managers have warned in a blog that the decline in white -collar employment creation, the decline in real wages and the rise of artificial intelligence (AI), weakening the engine of the middle class which has led to speed to India’s growth.
Since Diwali 2023, there has been a huge decline in the income growth of Indian companies, causing a decline in consumption. The reason for this is that the middle class Indians are getting out of money. RBI data shows that domestic savings have come to a 50 -year low as part of GDP in FY 2024, which was last seen in 1977. He writes, “Holi by 2024, the energy of the middle class will be over.”
The recession is visible everywhere. Consumption, which is 60% of the GDP, has decreased since the end of the “revenge expenses” of 2021-23. SUVs, housing and travel were ever booured; Now the demand is decreasing. Corporate income is also on this path – Nifty companies have recorded the fastest decline in FY 2025.
Jobs tell an even more frightening story. For a decade before 2020, white -collar jobs were doubled every six years. Since FY 2020, this growth rate has come down to only 3% annual – that is, it will take 24 years to double the jobs. The middle class employment spine, IT, software and retail have become stable.
The automation is intensifying this decline. Mukherjee explains how Indian IT giants are openly cutting the number of employees. TCS CEO K. Kritivasan said that with the expansion of AI in July 2025, the company would cut 2% (about 12,000 jobs) in its number of employees. HCL Tech’s C. Vijaykumar further said that the goal is to “double the revenue with the half -workforce”.
Income decrease is equally worrisome. Marselus analysis on Nifty 50 companies suggests that in the last eight years, the average salary of the employees has failed to coordinate with inflation. Unlike the era before 2016, when the salary was equal to the minimum rising cost, today’s white -collar employees are real poor.
For those who earn 4 crore white -collar earn India – Those who create about 200 million jobs at their expense – this is a threat bell. Mukherjee warns that until salary and employment creation improves, the middle class will remain tight for a long time in India, which can affect its economic pace.
3 reasons stopping middle class engine
According to Saurabh Mukherjee, three major reasons behind this crisis have been stated and said that white -collar is playing an important role in declining employment opportunities, reducing real wages and increasing scope of AI, weakening middle class engine, which has led to a boom to India’s development from the longitarm. He said in his blog that the consumption of companies is decreasing, because middle class Indians are getting out of money.
Domestic savings lowest in 5 decades
Mukherjee, citing the data of the Reserve Bank of India (RBI), said that domestic savings as part of GDP in FY 2024 have come to a 50 -year low, which was last seen in 1977. He further said that the recession is visible everywhere. Consumption, 60% of GDP, has come down since 2021-23. Whether it is about the SUV or the house or travel, in which there was a sharp bounce, their demand is now decreasing. Corporate income is also running on this track and companies listed on Nifty have recorded the fastest decline in FY25.
Lack of jobs increased trouble
Explaining the next reason in detail, Saurabh Mukherjee said that jobs tell another frightening story. Looking at the figures, before the year 2020, white -collar jobs were doubled every six years, but from FY20, this growth rate was reduced to just three percent annually. This means that now it will take 24 years for jobs to double. Employment IT, software and retail are seen from stables to be considered as the backbone of middle class.
He has described automation as a major reason for the decline in this decline. To explain the side effects of the expansion of AI, he gave the example of Tata Group company TCS and told that TCS CEO. Kritivasan has spoken of cutting 2% (about 12,000 jobs) in its number of employees with AI growth in July 2025.
Companies’ earnings event worrying
Mukherjee is calling the lack of income of companies as worrying as worrying as the rest of the reasons. He said that analysis on Nifty-50 companies shows that in the last 8 years, the average salary of employees has failed to coordinate with inflation. In the years before 2016, when the salary was equal to the minimum rising cost, today’s white -collar employees look real poor.
Mukherjee says that this is a danger bell of 4 crore white -collar professionals of India, who create about 200 million jobs at their expense. He warns that until the salary and employment generation does not improve, the middle class will remain tight for a long time in India, which can affect its economic speed.
