A survey by YouGov-Mint-CPR revealed that 88% of people consider themselves middle class. Interestingly, even those earning less than ₹50,000 per month identify as part of this group. Among the lower-income group, 90% claimed to belong to the middle class, while 57% of those earning over ₹4 lakh per month also consider themselves part of this category. This raises the question: Is there a better framework to define the middle class in India? A clear scale needs to be established to properly classify this segment.
Three Categories of Indian Consumers
According to Bloom Ventures, Indian consumers can be divided into three categories:
- Affluent Class: This group comprises approximately 30 million families (about 120 million people), with a per capita income of around ₹12.3 lakh. They are the country’s main consumer base.
- Aspirational Class: This class consists of 300 million people, with a per capita income of around ₹2.5 lakh. They are working toward improving their standard of living.
- Lower Class: The majority of India’s population falls into this category, with little to no guaranteed income and no means to secure loans.
The Need to Address Inequality
The affluent class in India is largely unconcerned with issues like pollution and frequently moves to countries in Europe or elsewhere, seeking a more comfortable lifestyle. On the other hand, the middle and lower classes are forced to cut back on essential expenses due to financial constraints. According to the latest Periodic Labour Force Survey (PLFS), between 2017-18 and 2022-23, workers’ real wages grew by only 0.7% per year. This highlights the growing inequality and the urgent need for policy interventions to address income disparities and ensure equitable growth for all segments of the population.