New Delhi: A large population of India is middle class. The upper and middle classes are extensions of this category. Middle-class families have a big contribution to running the Indian economy. But now this middle class seems to be in danger and it is likely to have a direct impact on the economy as well. According to a report by Marcellus Investment Managers, the middle class is now facing economic challenges and due to that, there is a decline in consumption.

According to the report, this is happening mainly due to 3 reasons. The first reason is the advent of technology, the second is the downturn in the economy and the deteriorating budget of households. The report says that the jobs that were once the backbone of the middle class are now disappearing because people are being replaced by automation and technology. Marcellus has mentioned that clerical and supervisory positions are constantly disappearing.

Veterans also agree.
Former Executive Chairman of National Statistical Commission, PC Mohanan says that managerial jobs are disappearing due to automation and outsourcing. Wipro Chairman Rishad Premji has also said that some jobs will be lost due to AI.

The report also mentions the rising debt
on families. According to RBI data, net household savings as a proportion of GDP is at its lowest level in 50 years. Gross savings have remained stable but rising unsecured loans have affected people's spending capacity. Talking about the shrinking middle class, Suresh Narayanan, MD of Nestle India, has said that this is the main reason for the decline in sales. He said, "The growth in the food and beverage sector which used to be in double digits is only 1.5-2 percent today. The same trend has been seen with Hindustan Unilever as well. The urban middle class holds 2/3rd of the FMCG market and this is where the decline in sales is visible.

Marcellus says that the slowdown in the economy may get better in the coming quarters, but the problems arising due to technology and increasing debt seem to be more complex.