India’s middle class is facing tough economic challenges, with household savings at their lowest in nearly 50 years.
RBI data shows that while gross savings remain steady, rising unsecured loans have left families with less disposable income. Technological disruptions, a cyclical economic slowdown, and worsening household balance sheets are key factors. Routine jobs are being replaced by automation, and high interest rates and inflation are shrinking discretionary spending. Companies like Nestlé and Hindustan Unilever report slowed sales, highlighting the struggles of the urban middle class.