The middle class – a lifestyle they cannot tolerate? The private banker wonders why the middle class has not been reduced in India

The middle class in India is not only spent, but rather to keep up with it. Roshaan Mahmoudani, a Mumbai -based private banking, informed the contradiction in LinkedIn.

“With the display of social media, the lives of the wealthy and celebrities, many middle -class families feel clicking on a similar lifestyle,” MAHBubani writes.

From international travel to luxury tools, the priority of the optics of success is often determined by financial reality.

“Personal loans, credit cards and Esh Emis have composed the middle -class consumers to buy luxury elements that were considered unknown one day.” But this increase in access to credit also led to exaggeration obligations for many families.

“This” ambition trap “results in giving priority to the expenses of lifestyle on savings and investments,” explains Mahbubani. With the development of peer lifestyles, pressure in order to keep pace with income levels without passion.

“The lifestyle crawl, as estimated spending increases with high income, causes families to preserve the standard of living that may not be in line with their financial reality.” Even with inflationary bites, unnecessary spending often continues without deterrence.

Many also justify indulgence as emotional comfort. “These expenses are a reward for hard work, despite the financial pressure that may cause it.”

Saurabh Mukherjea, founder of Marcellus Investment Managers, recently presented a blatant rating in podcasts. “The middle class borrowed the fist.” RBI data shows that credit cards and retail loans jumped from 4 % to 11 % of total bank credit over the past.

It warns that 5-10 % of the Indians of the middle class in a debt cycle are unlikely to pay many. RBI’s financial stability review reveals:

• 45 % of borrowers are mortgage.
• 48 % of their debts are intended for consumption, not investment.
• 67 % have personal loans.
• 25 % keep credit card, personal loan and at least one high -ticket loan.

“This is not just a borrowing of investment – this is to borrow for survival,” said Mukherjia.