'Middle Class Trap': Ankur Warikoo Observes Wages Stagnate As Markets Boom

India's Middle-Class Trap: A Growing Concern

Finfluencer Ankur Warikoo has sounded the alarm on India's middle-class trap, citing unprecedented growth in the stock market with no corresponding gains for the average worker.

Record Growth in Stock Markets, Stagnant Wages

• The BSE Sensex saw a 90% growth between 2020 and 2024.
• The NSE Nifty 50 logged 59 all-time highs in 2024.
• Mid-and small-cap indices saw yearly growth of 22-25%.

Meanwhile, the average salary grew by a mere 0.1% in the same timeframe, with real income even declining by 6.7% for employed men, 12.7% for salaried women, and 32% for self-employed women.

The Cost of Living Continues to Rise

• Rent and real estate prices have increased by 50-90%.
• Car and travel costs have also seen significant hikes.
• Education and gold prices have risen accordingly.

This has led to a significant increase in the cost of living, making it difficult for the middle class to make ends meet.

Profits Soar, Household Savings Plummet

Corporate profits have climbed by 23%, while household savings as a percentage of national income have fallen to 5.2% from 11.7% in 47 years.

The Widening Wealth Gap

• The top 1% now owns 40% of national wealth, up from 13% in 1961.
• India has 333 billionaires, with their aggregated wealth holdings equaling 50% of the country's GDP.

Warikoo notes that this is the most acute concentration of wealth in India's history, surpassing countries like the US, China, and South Africa.

A Path Forward

Warikoo advises viewers to stay away from bad debt, have emergency buffers, and consistently invest in long-term equities.

He emphasizes the importance of disciplined investing and making money work smarter, rather than just working harder.

"The rich aren't getting rich by working harder. They're getting rich by making their money work smarter — and the middle class must learn to play that game too," he said.