Is ₹5,000 a month still middle class in India? Businessman says "open an idli shop"

is a ₹5 million monthly salary is enough to be considered rich in India’s top metro cities like Bengaluru and Mumbai? The tech founder said it’s just the new middle class, adding that alternative income is a must.

AI startup CEO Sailesh P weighed in on Nobel laureate Abhijit Banerjee’s recent statement that a monthly income between ₹30,000 a ₹2 lakh qualifies as middle class.

In a viral LinkedIn post, Sailesh cited skyrocketing real estate costs, rising tuition and rampant healthcare inflation, and explained why a high-paying, single-income job is no longer a reliable safety net.

“I believe even in the big cities of India today. ₹5 lakh per month may still feel like a middle-class income to many families,” the tech founder said, sharing his perspective on Banerjee’s statement.

“Not because of that ₹5 lakh is not a good salary,” Sailesh said. The era of “comfortable salary” is over, he said.

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• A decent flat in Bengaluru, Mumbai, Gurugram or Hyderabad can cost ₹1-5 million.

• A good private tuition can easily exceed ₹2-10 million per child per year.

• Healthcare inflation in India averages 10-14% per year and is among the highest in Asia.

• Home loans, vehicle EMIs, insurance premiums, taxes and daily living expenses continue to rise faster than many salaries.

• Consumer inflation in India has risen significantly cumulatively over the past decade, while housing, education and healthcare have grown even faster than overall inflation.

“Zero shame for honest work”

The founder asked readers to imagine that he is 35 years old with a monthly income ₹2 lakh, supports parents, two children and EMIs while 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 is not earning less, but “relying on one source of income.”

“The world has changed. AI is changing industries. Agent AI is changing workflows. Jobs are changing,” he said.

“Your career should also change. Build multiple sources of income,” suggested the founder. “Consult. Learn. Create a product. Start a small business. Invest. Open an idli store if it generates positive cash flow.” – “There is no shame in honest work.”

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Driving Uber next week

As the startup builds its next venture, Agentic AI, Sailesh said he is “seriously considering riding the cycling 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 reality of the customer. The next generation is too worried about reputation,” he said in a viral post. “I think that era is over.

Sailesh noted that no one remembers the name, “they remember what you built.” “Don’t optimize for looks. Optimize 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 invited Rapido/Uber drivers to swap seats with him for a day or two – “I’d love to learn from you. You run my day. I’ll run yours.”

Sailesh said taxi drivers could keep 100% of their earnings and promised bonuses from his end “if I screw it up a bit”.

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How netizens reacted:

Social media users noted that high income is fragile and can disappear overnight. They said real career security 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 get a job: not just doing well, but staying connected, staying visible, staying known. We handle layoffs best not when we’re the most qualified, but when we’ve built relationships before we need them. Security is not something we get away with.” said the user.

Another user commented: “Inflation isn’t just about the cost of living, it’s reshaping aspirations. What does ‘middle class’ even mean when the metrics are changing so drastically? I wonder how startups are adapting their offerings to this evolving consumer base.”

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