“Let’s stop pretending that India has a great middle class”: the Redditor questions traditional definitions, triggers the debate

In a diverse economy such as India, the term ‘middle class’ is often used indiscriminately, leading to generalized ambiguity around its true definition. Traditionally, the Indian middle class is often defined by several income thresholds.

For example, the National Council for Applied Economic Research (NCAER) defines middle -class homes as those that win between RS 5 LAKH and RS 30 Lakh per year (around $ 6,000 to $ 36,000). But a Redditor has invited attention to the definition in constant evolution of the Indian middle class.

The post reiterates the common notion that people who earn between 67% and 200% of the average income are classified as middle class in India. “But I am not satisfied with this statement because in India income is not transparent due to the un organized sector and medium entry is so different in a city 1 city and in rural areas,” he says.

The Redditor caught attention to the deficiencies of this definition, especially taking into account the great disparities in the medium income between urban centers and rural areas. In the main Indian cities, the cost of living is substantially higher, altering the threshold of what could be considered middle class.

In addition, the un organized sector, which uses a large part of the Indian workforce, presents additional challenges due to the lack of documented income, which makes standard economic measures less effective.

To address these discrepancies, a more comprehensive framework has been suggested, which includes three essential criteria to define the middle class. First, it is important that all basic needs are met, including housing, food and education.

Secondly, there must be a degree of financial security that allows people or families to resist economic shocks without falling into destitution. This includes having at least six months of saved expenses and maintaining adequate health insurance. These measures ensure that the middle class can avoid financial ruin in case of unforeseen circumstances, although it could still result in a decrease in the quality of life.

In addition, the available income and savings play an integral role in the definition of the middle class. Ideally, an individual or home should be able to save at least 20% of their income. In addition, having 5-10% of the income available for discretionary expenses is considered a distinctive seal of the middle class state. This part of the income allows non -essential spending, which improves the quality of life and encourages economic stability.

A significant indicator of the middle class state is the ability to pay a small national trip once a year, which reflects financial flexibility and leisure expenditure capacity. These factors collectively provide a more nuanced image of the middle class beyond simple income supports.

The publication concludes that the concept of middle class cannot be strictly limited to the percentages of income in India. The consideration of broader economic and social factors, such as financial security, savings and discretionary spending, is crucial for a more precise classification.

The publication gave way to a detailed discussion about Reddit. “Let’s stop pretending that India has a great middle class. It is not.

Another user shared that “the gap between the rich and the poor is slowly expanding.” “The middle class is slowly decimating as a reaction to the actions of the rich. If there is a middle class population, which will consume the products/services created by the rich?” The user said.