New Delhi: For many middle class Indians, earning Rs 2 lakh a month in a metro city seems like a win-win scenario. However, many Tier-1 city earners find that their ideal of a comfortable life with Rs 2 lakh per month in a metro city is dashed by the high costs and growing expenses.
CA Nitin Kaushik has highlighted this harsh reality in his X post, pointing out that the Indian middle class is being crushed by a mathematical impossibility that no one wants to acknowledge.
__ The Indian middle class is being crushed by a MATHEMATICAL impossibility
that no one wants to admit.
Earning _2 lakh a month in a Tier-1 city sounds like a win –
until you realize:
_ Private school fees have surged 160% in a decade
_ Medical inflation is running at 14% -_
— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek)
He says that many people consider earning Rs 2 lakh a month in a Tier-1 city to be a victory until they realize that that money is not enough to keep up with rising prices and inflation. According to him, private school fees have surged 160 percent in a decade and medical inflation is running at 14 percent which is the highest in Asia.
Kaushik said that housing costs are equally rising with price-to-income ratios hitting 15× in Mumbai and 12× in Delhi. He says that buying a home is not only challenging but also a debt trap that consumes 50 percent of take-home pay in EMIs for the next 20 years.
According to Kaushik, the middle class is not making wealth due to the high taxes, expensive rent and high cost of essential services that the state fails to provide. He said that high earners are becoming debt-servicing machines for the real estate and education sectors with financial burden taking the place of the security their salaries promise.
Stay informed on all the , real-time updates, and follow all the important headlines in and on Zee News.