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 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.

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 next generation worries too much about reputation,” he said in the viral post. “I think that era is over.”

Sailesh noted that nobody remembers the title, “they remember what you built.” “Don’t optimise for appearances. Optimise for financial freedom,” he suggested. “Because in 2030, the people who thrive won’t necessarily be the ones with the highest salaries. They’ll be the ones with the most resilient income streams.”

He also urged a Rapido/Uber driver to switch seats with him for a day or two — “I’d love to learn from you. You drive my day. I’ll drive yours.”

Sailesh said the cab drivers can keep 100% of the earnings and promised bonuses from his end “if I screw up a little”.

How netizens reacted:

Social media users noted that high income is fragile and can vanish overnight. They said true career safety is built through continuous upskilling, professional visibility, and proactive networking before layoffs occur.

“Income and security aren't the same thing. A high salary can disappear overnight, but the skills that keep us employable don't. That's the real work after we land the job: not just doing well, but staying connected, staying visible, staying known. We weather layoffs best not when we're the most skilled, but when we've built relationships before we needed them. Security isn't something we're given. It's something we build, quietly, while things are going well,” a user said.

Another user noted, “Inflation isn't just about the cost of living; it's reshaping aspirations. What does ‘middle class’ even mean when the benchmarks shift so drastically? Curious how startups are adapting their offerings to this evolving consumer base.”

“Defining a middle-class income group is a complex issue and depends on several factors, including the location in India, age group, family size, past history of spending, debts, nature of job/profession, distance of residence from work location etc. Therefore, a person with a salary of even 1 lac may find it difficult to be considered middle-income, given his circumstances. And even a person with a 30k salary may be comfortably middle-income,” said another user.