India’s middle class is sleepwalking into a financial crisis, warns Saurabh Mukherjea, founder of Marcellus Investment Managers. With household financial savings at a 50-year low and debt levels (excluding mortgages) among the highest globally, Mukherjea says the country is dangerously unprepared for a looming wave of tech-driven job disruption.

“It’s a deadly combination,” he said in a podcast with Mint. “A young, populous country producing 10 million graduates a year, not saving enough, and staring down massive technology-driven disruption.”

Mukherjea points to indicators that track white-collar employment and show clear signs of distress. In Western economies, such data might raise eyebrows—but not alarms—because of aging populations and labor scarcity. 

“But we have the youngest population in the world, median age 28, and the employment base is not expanding fast enough,” he said.

What’s more troubling, according to Mukherjea, is the lack of awareness or preparation. “I’m not hearing from mid-career professionals much financial planning,” he said. “Instead, I see people in their 30s and 40s spending on electronics, cars, and holidays, while their savings remain painfully low.”

The problem is compounded by a shift in the nature of employment. With tech advancements threatening millions of white-collar jobs, Mukherjea believes the traditional path of graduating and job-hunting is rapidly becoming obsolete. 

“India will need to move fast—from ‘graduate and get a job’ to ‘graduate and create one,’” he said, urging a cultural shift toward entrepreneurship.

He cites recent warnings from tech leaders like Eric Schmidt, who predicted that coders may no longer be needed in five years. Mukherjea believes India has just two to three years to adjust.

“The financial infrastructure of the Indian middle class is not ready,” he cautioned. “And unless we wake up and change course, the fallout could be severe.”