PeepalCo CEO Ashish Singhal Highlights Struggles of India’s Middle Class

A LinkedIn post by PeepalCo CEO Ashish Singhal has thrown light on the problems faced by middle income earners in India. The post ignited a fierce debate over what he calls the “biggest scam no one talks about.”

Singhal wrote, “Over the past 10 years: The group earning under ₹5L saw a 4% CAGR. ₹5L–₹1Cr income group has seen just 0.4% CAGR. Food prices? Up nearly 80%. Purchasing power? Cut almost in half. But spending? Up, funded by credit.”

He argued that the middle class is absorbing shocks without any complaints or support.

Singhal: A Well-dressed decline

The middle-class in India continues to live what seems like a stable life despite rising costs of living and static wage growth. They take holidays, upgrade their smartphones, and pay their EMIs, but deep inside lies an untoward reality, Singhla claims.

“This isn’t a collapse. It’s a well-dressed decline. You’re still flying once a year. Still buying a phone. Still paying EMIs. But you’re also skipping the savings. Delaying the doctor visit. Doing the mental math in every Zomato checkout,” he observed.

Due to stagnant salaries, credit cards and loans have become necessities

Is the middle class under pressure?

His post drew significant attention as it shed light on a widely felt but rarely discussed issue. Notably, middle-income earners who earn ₹5 lakh-1 crore, have reported a paltry wage growth of just 0.4% annually. On the other hand, the price of food, education, fuel, and healthcare have soared.

“The poor are being supported. The rich are scaling. The middle class is just expected to absorb the shock, in silence. No complaints. No bailouts. Just inflation, EMIs, and quiet pressure,” he wrote.

What did users say?

Many users related to the message Singhal wanted to convey through his post. A user commented, “The middle class is quietly getting squeezed from both sides. But it’s also its own fault for choosing to stay quiet and naively hoping that just staying the course of 9 to 9 jobs, home loans and car loans will improve the situation.”

Interestingly, another CEO asked Singhal to reflect on his own pay practices: “Good one. But, as CEO, what was the pay rise you gave to your employees vis-a-vis yours? That should be interesting to know.”

Some users felt nothing would change. “Crying on any platform won’t make any difference. India was moving on like this and will continue like this,” one commenter wrote. Another added, “Salary alone can't make anyone wealthy anywhere in the world.”

However, some users had an optimistic view. One LinkedIn user said that his income had grown, moreover, his living standards have also improved.

Previously, investment banker Kanishk Kar shared a similar post on LinkedIn, reflecting on the problems faced by the Indian middle class.

Kar wrote, “Incomes haven’t kept up with inflation… The cost of basics — food, rent, fuel, school fees — is rising faster than wages. Every month, that ‘buffer’ money is getting thinner.”

He added, “The Indian middle class is not lazy. Not entitled. Not unambitious. They’re just running on a treadmill that’s speeding up while their shoes are wearing out. If we want a stronger India, we need to stop treating them like they’re fine. Because they’re not.”

Middle class: overview

Middle-class accounted for 31% of the country’s population in 2021, which is expected to soar 38% by 2031 and 60% by 2047. But despite their growing numbers, their financial well-being is steadily eroding.