When does Indian 'middle class' stop being middle class? Edelweiss' Radhika Gupta explains why you might not be one

The idea of who belongs to India’s middle class has been debated for decades, shaped by economic growth, rising aspirations, and widening income gaps. As urban salaries climb and social media influences lifestyle choices, the definition of “middle class” is becoming increasingly blurred. What once referred to modest earners with stable jobs and limited luxuries is now being claimed even by those with incomes that place them in the top-earning segment of the country.

What Qualifies As Middle Class?
This issue came into focus recently when a podcast by Rahul Jain raised the question of whether an annual income of Rs 70 lakh can still be considered middle class. Edelweiss Mutual Fund CEO Radhika Gupta offered a clear answer, stating that such an income does not fit the category and instead belongs to the upper class.

Gupta explained that while many professionals in urban India continue to describe themselves as middle class, the actual income range for that group is much lower—between Rs 5 lakh and Rs 8 lakh annually. She stressed that applying a single income definition to a country of 140 crore people is unrealistic.

According to her, about 10 crore Indians earn the equivalent of $12,000–$14,000 annually, while more than 100 crore people live on less than $2,000 per year. By this measure, those earning Rs 70 lakh are not average professionals but part of the country’s top earning bracket.

Psychological Attachment to Middle Class Label

Even so, Gupta noted that the middle-class identity remains deeply personal for many. She pointed out that this comes from family roots, as a large number of today’s high earners come from middle or lower middle-class backgrounds. Holding onto that identity is a cultural habit, but in financial terms, it no longer reflects reality.

Despite higher earnings, dissatisfaction often persists. Gupta highlighted how urban living costs, rising rents, and lifestyle inflation make even large salaries feel inadequate. Social media has added to the strain by creating a constant cycle of comparison.

She cited the example of a young professional who explained that resisting long work hours was linked to maintaining fitness, taking vacations, and keeping up with online appearances. This, Gupta said, is part of a larger competition driven by digital exposure.