This market crash couldn’t have hit India’s middle class at a worse time. Economic growth is slowing, wages remain stagnant, private investment has been sluggish for years and job creation isn’t keeping pace. Amid these challenges, many new investors, lured by rising markets, are now grappling with unexpected losses.
“In normal times, savers can take short-term setbacks, because they have steady incomes, which keep adding to their savings,” noted , externalAunindyo Chakravarty, a financial analyst.
“Now, we are in the midst of a massive economic crisis for the middle-class. On the one side, white-collar job opportunities are reducing, and raises are low. On the other, the real inflation faced by middle-class households – as opposed to the average retail inflation that the government compiles – is at its highest in recent memory. A stock market correction at such a time is disastrous for middle-class household finances.”
Financial…
