Recent student protests in India highlight the struggles of a middle class that has seen its growth slow significantly in recent years. These protests are often linked to the economic challenges faced by the middle class, including high graduate unemployment and a decline in purchasing power. While the upper middle class has grown wealthier, the lower-middle class has faced financial strain, leading to growing frustration and unrest among young people. Until the mid-2010s, India’s middle class was expanding rapidly, driven by double-digit economic growth and the rise of the IT sector. This period, under Prime Minister Manmohan Singh, saw the emergence of a new social group composed of professionals, entrepreneurs, and engineers. However, since the mid-2010s, the middle class has stagnated. According to the Pew Research Center, only about 8% of India’s population, or roughly 108 million people, were considered middle class as of 2017. Real incomes for the middle class have remained stagnant, with wages declining in key sectors like manufacturing, energy, and services. Persistent inflation, particularly in food prices, has made it difficult for families to maintain their standard of living. Urban incomes have shown little growth in recent years, with wage increases failing to keep up with inflation. This has led to a growing divide within the middle class, where some households have climbed into the economic elite, while many others have seen their financial situations worsen. Data from the World Inequality Lab shows that income inequality in India has increased sharply. The richest 10% now hold nearly 58% of the country’s national income, compared to just 33.5% in 1990. Meanwhile, the poorest 50% now claim only 15% of national income, down from 44.1% in 1990. This growing disparity is reflected in consumption patterns, with the wealthiest spending significantly more than the poorest. However, even the middle class has been forced to rely on savings and take on debt, as consumer demand has slowed and economic growth has not translated into widespread prosperity. India’s official economic growth rates, which have generally hovered around 7-8%, have been questioned by international organizations like the International Monetary Fund, which suggest these figures may be overestimated by 1.5 to 2 percentage points. Economic shocks such as the 2016 demonetisation, the rollout of the Goods and Services Tax in 2017, and the impact of the pandemic have also contributed to economic instability. With a K-shaped recovery, the wealthiest have benefited from growth, while the working and middle classes have seen little improvement. Young Indians with higher education face a particularly difficult job market, with unemployment rates among graduates reaching 29.1% in 2024, according to the International Labour Organization. This is nine times higher than the rate among those without formal education. Many graduates are unable to find work that matches their expectations or the level of investment their families have made in their education. Employers often cite a mismatch between the skills of graduates and the needs of the workforce, with top institutions like the Indian Institutes of Technology struggling to place even their best students. The IT sector, once a major driver of middle-class growth, is now slowing down, with declining revenue, reduced investments, and a shrinking workforce. Automation and artificial intelligence are threatening many jobs in the sector, and while new opportunities in Global Capability Centers may arise, these are largely reserved for highly skilled professionals. This trend is likely to deepen the divide in the labor market, favoring a small group of highly skilled workers while leaving many others without stable employment.