Why the Indian Middle Class is Poorer Than the Poor
- Madhukar Dama
- Apr 4
- 6 min read
As I see it, "the Indian middle class is “poorer” than the poor".
Especially in terms of quality of life, financial security, social mobility, and systemic exploitation.
This idea can be backed by several structural, psychological, and economic arguments.
Here’s an exhaustive list of points supporting that idea, with explanations:
Government & Policy
1. No Free Ration – Middle-class families aren't eligible for free government food schemes.
Example: BPL families get free grains, but a middle-income family spends thousands per month on basics.
2. No Subsidies – Fuel, gas, and food subsidies are for the poor; middle class pays full price.
Example: Poor get subsidized LPG, but middle-class pays market rate.
3. No Free Electricity – Electricity subsidies often exclude the middle class.
Example: Farmers may get free power, while the middle-class household pays the full tariff.
4. Pays Full Taxes – Salaried class can't hide income and pays regular taxes.
Example: A teacher pays 20% income tax, but a shop owner might show zero income.
5. No Tax Relief – Limited deductions mean they can't save much through tax planning.
Example: Even basic education or medical expenses offer little deduction.
6. Not Eligible for Welfare – Most welfare schemes exclude them due to income thresholds.
Example: Middle-income families don't qualify for Ayushman Bharat.
7. Ignored by Politicians – Vote-focused policies target the poor or rich, not the middle.
Example: Election promises are for farmers, youth, or industry—not salaried workers.
8. No Free Health Scheme – Public health insurance often doesn't cover the middle class.
Example: Poor get free surgeries, middle-class pays full hospital bills.
9. No Government Job Quotas – Reserved jobs go to SC/ST/OBC/EWS, not general middle class.
Example: A bright middle-class student struggles without reservation benefits.
10. No Free Housing – Urban housing schemes prioritize slum dwellers or EWS.
Example: Middle-class must take expensive home loans.
11. No Skill Programs – Skill-building initiatives mostly target unemployed or rural youth.
Example: ITI courses are free for low-income groups but not the middle class.
12. No Pension from Govt – Most don’t have pension benefits.
Example: A private employee retires with savings only, unlike a government worker.
13. No Emergency Relief – Disaster funds usually go to visible poor communities.
Example: COVID relief was directed at daily wage earners, not salaried workers.
14. No Job Reservation – Merit-based jobs rarely help general category middle-class people.
Example: General students need high scores, while others get in with lower cut-offs.
15. Policy Focuses on Votes, Not Them – Political policies are aimed where votes are highest.
Example: Farm loan waivers win elections, not income tax relief.
16. Not Seen as a Vote Bank – They are fragmented, not organized, and hence ignored.
Example: No party campaigns exclusively for middle-class interests.
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Money & Debt
17. High EMIs – Most assets like homes, cars, appliances are on loans.
Example: A family pays 60% of monthly income towards EMIs.
18. Always in Debt – Lifestyle often exceeds income.
Example: Credit card debt becomes a constant companion.
19. Low Savings – High expenses and inflation leave little room to save.
Example: After rent, school fees, EMIs—very little is left.
20. No Family Wealth – Generational wealth is rare.
Example: Parents had to start from scratch; same with children.
21. Living Paycheck to Paycheck – One missed salary causes chaos.
Example: Salary delay leads to late EMIs and penalties.
22. Can’t Afford Medical Emergency – Private hospitals are unaffordable without insurance.
Example: A single surgery can wipe out years of savings.
23. No Investment Returns – Lack of financial planning leads to low returns.
Example: Money kept in low-interest savings instead of productive assets.
24. Loses Money in Scams – Chit funds and fake investments prey on them.
Example: Many lose lakhs in real estate or ponzi schemes.
25. Dependent on Loans – Education, marriage, even gadgets bought via EMIs.
Example: A ₹20,000 phone bought on a 12-month EMI plan.
26. No Property Ownership – Home prices are unaffordable in major cities.
Example: A family pays high rent for years, unable to buy.
27. Price Hikes Hurt More – Inflation hits hard when income is stagnant.
Example: Rise in fuel or school fees affects monthly budget.
28. Pays More, Gets Less – Services they pay for are often low-quality.
Example: Private school education with crowded classrooms.
29. Expensive City Rent – Urban life drains income quickly.
Example: Half of salary goes to rent in a metro city.
30. Loan Interest Keeps Rising – Floating interest increases EMI burden.
Example: ₹20 lakh loan EMI rises by ₹3,000 in one year.
31. Lack of Financial Advice – Don’t know where to invest wisely.
Example: Invests in gold or real estate based on hearsay.
32. Expensive Child Education – School and coaching costs are sky high.
Example: ₹1 lakh+ per year per child for basic schooling.
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Work & Jobs
33. No Job Security – Private jobs can vanish overnight.
Example: IT layoffs after a market dip.
34. Overworked and Underpaid – Long hours with minimal pay growth.
Example: Works 12 hours daily but no raise in 3 years.
35. Weekend Work is Normal – Personal life suffers.
Example: Emails and meetings on weekends are expected.
36. Few Holidays – No time for rest or travel.
Example: Annual leave not approved due to workload.
37. Job Layoffs Are Common – Recession hits them first.
Example: Startups fire staff to cut costs.
38. No Labor Rights – No protection from firing or exploitation.
Example: Contractual jobs offer zero security.
39. Unpaid Overtime – Long hours without compensation.
Example: Finishing reports late into the night for free.
40. No Paid Sick Leave – Taking leave means lost income.
Example: Some small firms deduct pay even for medical emergencies.
41. Poor Work-Life Balance – Family and health suffer.
Example: Misses child’s school event due to deadlines.
42. Retirement is Uncertain – No pension or fallback.
Example: Must work until 65 to stay afloat.
43. Corporate Exploitation – Performance pressure never ends.
Example: Year-end reviews tied to unrealistic goals.
44. Less Pay Than Skill Deserves – Degrees don’t guarantee income.
Example: MBA working for ₹25,000/month.
45. No Union Support – No one to fight for rights.
Example: Tech workers can’t unionize like factory workers.
46. Career Growth is Slow – Promotions take years.
Example: Still at junior level after 8 years of experience.
47. No Government Job Perks – Unlike PSU jobs, there’s no stability.
Example: No health coverage or pension plan.
48. Job Skills Become Outdated Fast – Constant learning required.
Example: Older workers replaced by younger, cheaper staff.
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Social & Psychological
49. Fake Social Pressure – Needs to appear successful.
Example: Takes loans to throw a grand wedding.
50. Stress from Bills – Constant anxiety over payments.
Example: Electricity and internet bills pile up quickly.
51. Wants to Look Rich – Spends on brands to show status.
Example: Buys expensive phone despite financial stress.
52. Feels Always Behind – Social media fuels comparison.
Example: Friends abroad, luxury posts create inferiority.
53. Mental Health Neglected – No time or access to therapy.
Example: Anxiety and depression untreated.
54. Burnt Out Easily – No time to recover from stress.
Example: Constant tiredness despite sleeping.
55. No Time for Family – Work eats into personal life.
Example: Can’t attend parent-teacher meetings.
56. No Time for Self – No hobbies, leisure or rest.
Example: Abandoned gym, reading, relaxation.
57. Fear of Losing Status – Constant race to maintain image.
Example: Keeps buying to keep up with peers.
58. Lives to Pay Loans – Life becomes cycle of earning and paying.
Example: Multiple EMIs leave nothing for enjoyment.
59. Peer Pressure to Compete – Neighbors and friends create pressure.
Example: Feels inferior if not owning a car.
60. Anxiety About Future – Uncertain about jobs, kids, health.
Example: Constant worry about old age expenses.
61. No Support System – Cut off from joint family and local help.
Example: No one to help in emergencies.
62. Feels Invisible – Not noticed by government or media.
Example: News focuses on rich or poor only.
63. Can’t Say No to Expenses – Weddings, festivals force spending.
Example: Spends heavily during Diwali despite debt.
64. Lives on Hope Alone – Dreams of future comfort keep them going.
Example: Believes tomorrow will be better, but nothing changes.
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This list reveals the hidden struggles of the Indian middle class—financially stretched, socially burdened, and politically overlooked. While the poor may get systemic aid and the rich enjoy power, the middle class is often left to fight alone.
Summary:
The Indian middle class is squeezed from all sides—socially, economically, and psychologically. They earn too much to get help, but not enough to be secure. Their aspirations are inflated, yet the rewards are shrinking. In many ways, the poor have institutional support and a more community-driven life, while the middle class is left alone, indebted, and stressed out.
