Income increases, savings decline for India's lower middle class
India's lower middle class is seeing paychecks grow but savings shrink, according to Home Credit India's latest report.
This year, 57% said their income went up (compared to 52% last year), but only half managed to save—down from 60%.
Average monthly income at ₹33,000
Average monthly income sits at ₹33,000, but with essentials like groceries costing around ₹20,000 a month, many are left stretched.
About 12% even borrow just to cover basics.
Education expenses have jumped 34% in a year
Education expenses have jumped 34% in a year and now take up nearly a fifth of household budgets—especially for Gen X families.
Borrowing isn't just for needs; it also covers things like appliances or travel.
Digital tools are making money management easier for many
Digital tools are making money management easier for many (63%), with UPI now used by 80%.
But nearly half say they'd quit digital payments if extra fees were added.
Despite tighter budgets, most remain optimistic about reaching big goals
Despite tighter budgets, most (73%) remain optimistic about reaching big goals like owning a home or funding their kids' education within five years.
The takeaway: optimism is high even as wallets feel the squeeze.