AI, Iran tensions, capital flows pose risks to India's middle class

India's middle class faces potential economic headwinds from converging global developments, including artificial intelligence disruption, geopolitical tensions in Iran, and shifting capital flows.

Experts warn that job displacement driven by AI adoption, declining asset values, and mounting inflation could undermine household finances and consumer confidence. These pressures may trigger longer-term social and economic instability that proves difficult to reverse.

The combined effect of these factors could test India's economic resilience and reshape consumption patterns among the middle-income population, which has been a key driver of recent growth.