India’s economic liberalization in 1991 promised the creation of a robust middle class. This ‘new middle class’ is characterized by rapid economic growth, globalization, and the rise of the service sector. This group has experienced significant upward social mobility and has become an influential force in shaping the social, cultural, and political landscape of India. Unlike China, however, which moved more than half of its households out of poverty to annual income levels above $10,000, India has been able to shift fewer than 20% of its households over this mark. Instead, India’s population has primarily shifted to the $5,000- 10,000 income level, which is considered vulnerable.

The salient features of the new middle class in India are:

Economic Transformation: The new middle class emerged as a result of the economic liberalization policies introduced in the 1990s, which led to the growth of the private sector and the service industry. This group primarily comprises of professionals, entrepreneurs, and employees in the service sector, such as IT, finance, and telecommunications. They have experienced a significant increase in their income levels and have access to better job opportunities, leading to an improvement in their overall standard of living.

Consumerism:  The new middle class is characterized by a high degree of consumerism, driven by increased disposable income and exposure to global brands and products. They are more likely to spend on luxury items, branded goods, and leisure activities, which were previously considered unaffordable or inaccessible. This has led to the growth of consumer markets in India and has also influenced the advertising and media industries.

Education and Skills:  The new middle class places a high premium on education and skill development, as these are seen as essential tools for social mobility and success in the competitive job market. They invest heavily in their children’s education, often opting for private schools and coaching classes, and encourage them to pursue higher education and professional degrees. This emphasis on education has led to the growth of the private education sector in India.

Urbanization: The new middle class is predominantly urban and is concentrated in metropolitan cities and emerging urban centers. They have contributed to the growth of gated communities, shopping malls, and multiplexes, which cater to their lifestyle preferences and aspirations. This has also led to the spatial segregation of the urban landscape, with the new middle class residing in well-planned, upscale neighborhoods.

Social Identity: The new middle class in India is characterized by a complex and fluid social identity, which is shaped by factors such as caste, religion, region, and language. While they may retain some traditional values and practices, they are also open to embracing modernity and experimenting with new ideas and lifestyles. This has led to the emergence of a hybrid culture, which combines elements of both tradition and modernity.

Political Influence: The new middle class has become an influential force in Indian politics, as they are seen as a crucial vote bank by political parties. They are more likely to be politically aware and engaged, and their concerns and aspirations often shape political agendas and policy decisions. The rise of the Aam Aadmi Party (AAP) in Delhi and the support for Narendra Modi-led BJP in the 2014 general elections can be attributed, in part, to the aspirations of the new middle class.

Social Activism: The new middle class is also characterized by a heightened sense of social responsibility and activism. They are more likely to participate in social movements and campaigns, such as the anti-corruption movement led by Anna Hazare and the protests against the Delhi gang-rape case in 2012. This activism is often driven by a desire for social change and a more just and equitable society.

The new middle class hence in India is a dynamic and influential socio-economic group, which has emerged as a result of the economic liberalization policies and the growth of the service sector. They are characterized by their economic prosperity, consumerism, emphasis on education, urban lifestyle, fluid social identity, political influence, and social activism.