Is ₹5 lakh a month still middle class in India? Entrepreneur says ‘open an idli shop’
Is a ₹5 lakh monthly salary enough to be considered wealthy in India’s top metro cities like Bengaluru and Mumbai? A tech founder said it
Is a ₹5 lakh monthly salary enough to be considered wealthy in India’s top metro cities like Bengaluru and Mumbai? A tech founder said it is just a new middle class, adding that an alternate income is must. AI startup CEO Sailesh P was weighing in on Nobel laureate Abhijit Banerjee's recent statement suggesting that a monthly income between ₹30,000 and ₹2 lakh qualifies as middle-class. In the viral LinkedIn post, Sailesh cited sky-high real estate costs, surging school fees, and rampant healthcare inflation, and explained why a high-paying, single-income job is no longer a reliable safety net. “In India’s major cities today, I believe even ₹5 lakh a month can still feel like a middle-class income for many families,” the tech founder said, sharing his perspective on Banerjee's statement. “Not because ₹5 lakh isn’t a good salary,” Sailesh said. He said the era of the “comfortable salary” is over. Also Read | Do welfare schemes make the poor lazy? Economist Abhijit Banerjee shares data Here's why • A decent apartment in Bengaluru, Mumbai, Gurugram or Hyderabad can cost ₹1–5 crore.
• Good private school fees can easily exceed ₹2–10 lakh per child annually. • Healthcare inflation in India has averaged 10–14% annually, among the highest in Asia. • Home loans, vehicle EMIs, insurance premiums, taxes and day-to-day living costs continue to rise faster than many salaries. • India’s consumer inflation has cumulatively increased significantly over the past decade, while housing, education and healthcare have risen even faster than headline inflation. ‘Zero shame in honest work’ The founder asked readers to imagine being a 35-year-old with a monthly income of ₹2 lakh, supporting parents, two children, and EMIs, while also saving for retirement and financial security. — “You’re not poor. But you’re probably not financially free either.” Sailesh noted that the “biggest risk” today isn’t earning less, but “relying on one source of income.” “The world has changed. AI is changing industries. Agentic AI is changing workflows. Jobs are changing,” he said. “Your career should change, too. Build multiple income streams,” the founder suggested. “Consult. Teach. Build a product. Start a small business. Invest. Open an idli shop if that’s what creates positive cash flow.” — “There is zero shame in honest work.” Driving Uber next week As the startup builds its next Agentic AI venture, Sailesh said he's “seriously considering driving for a ride-hailing platform for a week or two—to understand the business from the ground up before trying to solve its problems.” “Too many founders build products without ever living the customer’s reality.
The BriefWire