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Middle class in India

The middle class is the class of people in the middle of a social hierarchy, often defined by
occupation, income, education, or social status. Various ways of understanding and
conceptualizing the middle class are as follows:
1) Those who are not members of the capitalist class or the manual working class

2) Those in white -collar occupations.

3) Income: According to Birdsall & Mayer, those with income from Rs. 2 to 10 lacs per
annum fall under the middle class. As of 2011, 5.8% of India's population is middle class.

4) Consumption expenditure: Sandhya Krishnan and Neeraj Hatekar divide the middle class
into 3 sub-categories, based on Consumption Expenditure per capita per day.

Consumption Expenditure
(in USD) Persons
$2-$4 44.6 crores
$4-$6 10.8 crores
$6-$10 4.9 crores
Total 60.3 crores

5) Those who fill Income Tax Returns or pay income tax.

6) Wealth: Credit Suisse Global Wealth Report 2015 prefers wealth criteria over income. An
income-based definition of the middle class misses elements of freedom and security. It
suggests, for example, that a spell of unemployment can cause middle class status to
evaporate. A wealth-based definition, on the other hand, conforms better to the widespread
view that middle class membership is resilient to temporary setbacks. The report identifies as
middle class in India those with a wealth between Rs 7.37 lacs and Rs 73.7 lacs. It estimates
that around 2.36 crore people in India are middle class.
7) Self- identification

Development of the Indian middle class

During colonial period BB Mishra in book titled ‘The Indian Middle Classes: Their
Growth in Modern Times’ suggests that the development of the Indian middle class is an
outcome of the modern education system instituted by the British. The higher castes were the
first to send their children to modern education institutions. These children imbibed modern
values and when they grew up, they took up middle class professions such as lawyers,
teachers, managers and administrators.
After independence, there was an expansion of education. Pubic sector employment was the
best way to acquire middle class status.
Economic reforms The opening up of the economy after the economic reforms of 1991
proved crucial for the middle classes. Gurcharan Das in his book ‘India Grows at Night’

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points out that the large middle class today is primarily because of economic liberalization.
Globalization has resulted in an exponential growth in middle class.

Nature of the Indian middle class

1. Heterogeneous Andre Beteille contends that Indian middle classes are derived from
numerous castes, ethnicities, tribal and non-tribal identities, spread across regions, differ in
terms of language, religious affiliation and culture. Beteille suggests that given the
heterogeneity, instead of talking in terms of a ‘middle class’, we should talk about the several
‘middle classes’ in India.
2. Both rural and urban Mariam Aslany points out that 40% of India’s middle class
population lives in rural areas. Rural middle class prefers to work outside agriculture. They
strive to get their children educated in English medium private schools.

3. Shared interests Pavan Varma in his book "The Great Indian Middle Class"
contends that despite heterogeneity, the middle class have some common features: middle
level income, similar material possessions and similar aspirations centering around stability
and security.
4. Education focused The middle class is very particular about educational attainment. They
see education as an investment in a better future. Education is recognized as the key avenue
for social mobility.
5. Respectability The middle class is very conscious and concerned about maintaining
social respectability.

6. Unsure of its Values Andre Beteille says that the middle class in India are very
confused. The values of Indian middle class are not clearly crystallized. Indian middle class
readily does things which it condemns in others; like corruption and nepotism. Indian middle
class is neither traditional nor modern; it is transitional.

Middle class women and girls in India are universally educated. Most have even obtained
higher education. While some are engaged in gainful employment outside the home while
some are homemakers.
Middle class women in India are oscillating between tradition and modernity. Many of them
dress in western style, many speak fluently in English, and are technologically savvy. But
they are also traditional in many aspects. Goddess Sita from the Hindu epic Ramayana is the
idol for many Indian middle class women. Even for working women; marriage and
motherhood are extremely important. Andre Beteille says that middle class women have
achieved superficial emancipation. While they may make choices in routine matters, for
important questions like choice of occupation or marital partner; they are greatly constrained
by patriarchal expectations of parents, husband and family members.

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New Middle Class

The new middle class is an outcome of liberalization of the Indian economy since 1990s.

Pavan Varma in his book "The New Indian Middle Class" says that for the new middle
class; its class identity has become more important than even its caste identity. This new
middle class is also well connected, as most of its members have a mobile phone. Leela
Fernandes in her book "India's New Middle Class” says that the English educated, urban
middle class constitute the new middle class. The old middle class of the Nehruvian era
avoided conspicuous display of wealth. But the new middle class is driven by a consumerist
ethos. It publicly displays its wealth unabashedly. It is highly brand and status conscious. It
asserts its status through display of its material possessions.
In ‘Looking Away’, Harsh Mander suggests that the middle class are the biggest benefits of
globalization. Therefore, they look away or ignore the adverse effects of globalization for
other sections of the society; such as the tribals, the minorities, the working class and the
urban poor.

Role of the middle class in politics, administration, and development

During the colonial period, the middle class partnered with Europeans in administration. Its
members also initiated socio-religious reforms. Later on, the middle class led the anti-
colonial struggle and helped in the development of national consciousness. (BB Mishra)
After independence, the middle class enthusiastically participated in the project of national
development in response to the call of national leadership .The middle class made a
commitment to serve the nation and was driven by Gandhian idealism and Nehruvian
socialism. By 1970s, however, the middle class from began to disengage from the political
system as it became increasingly cynical and lost faith in the political leadership. Thereafter,
the middle class became increasingly inward-looking. (Pavan Varma)
Globalization era: After economic reforms, the middle class has exploded in size and also
started to politically assert itself. Leela Fernandes suggests that the middle class has tried to
influence the politico-administrative system through civil society movements. Pavan Varma
contends that as the numbers of the middle class have exploded, their political importance has
also greatly increased. The shift towards the right in Indian politics, clearly visible from the
2014 general election onwards, can be credited to the vote of the middle class. Leela
Fernandes also considers that the political assertion of the middle class has coincided with the
political rise of the Hindutva ideology. However, the politics of the middle class cannot be
reduced to the right wing alone.

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Working Class
Sharit Bhowmik in his book ‘Industry, Labour and Society’ says that the composition of
the working class in India captures the diversity present in Indian society. Its members are
drawn from various castes and communities, it includes both men and women, includes child
labour adults and the elderly; belonging to diverse ethinic groups, linguistic groups, work
across sectors such as mining, construction sites, and industry. They work in various
categories of enterprises- micro, small, medium and large. Working class is present in both
formal and informal sectors.

According to the National Commission for Enterprises in the Unorganized Sector headed by
Arjun Sengupta; the informal sector comprises of various unincorporated enterprises,
whether owned by individuals or partnership or household, which employ less than 10
persons.
As per Economic Survey 2021 – 22:

Type of Organized sector Unorganized sector Total

employment
(in crores) (in crores) (in crores)

Formal 5.09 0.80 5.89

Informal 4.46 43.19 47.64

Total 9.55 43.99 53.53

Sharit Bhowmik points out that there are important social implications of having a large
informal workforce; as follows.

1. A large number of workers (informal workers) are without any job security. Their
continuation in employment is tentative and often, at the whim of the employer.
2. Lack of social security mechanisms implies continued dependence on the family in
old age or disability.
3. The huge informal work force remains vulnerable to exploitation by the industry
owners.
4. Informal workers suffer from low productivity. This has a detrimental effect on the
economic growth of nation as well
5. Informal workers are not able to benefit from the pro-workers legislative framework.
6. Informal workforce is also deprived of the strength of collective bargaining. Their
concerns are also ignored by the trade union movement.

Caste and working class

Clark Kerr suggested that modem industry requires ‘committed labour’. Traditional social
structures like caste and kinship have prevented the emergence of committed labour in India.
These social structures are therefore a hindrance to industrialization.

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However, studies by N.R. Sheth and R.D. Lambert suggest that the Indian workers are
more committed than the workers in the west. N.R. Sheth in his study of workers in Pune
factories found that the workers considered their employer as a Jajman and performed their
assigned tasks with a religious zeal. Worker recruitment in Indian industry also relies upon
caste and kinship networks. This helps in ensuring commitment of the newly recruited
workers and greater productivity.

Working class and Middle class

Andre Beteille opines that at the time of India’s independence, when the level of
industrialization was low, India had a small working class and a small middle class. The 2
classes were clearly separate and distinguishable from each other.

Criteria Working Class Middle Class

Income level Low Higher
Blue collared (manual) jobsWhite collared (non-manual)
Nature of occupation jobs
Standard of living Worse Better
Optional, not much stressed Important and integral
Education upon
Social perception of Rough jobs Respectable jobs
occupation

However, as industrialization has progressed, India has developed a large working class and a
large middle class. So, the earlier clear distinction between the 2 classes no more holds good
today. Today, Beteille suggests, many working class persons live like the middle class.
Expansion of education and opportunities for social mobility have ensured that a large chunk
of the working class are today enjoying what were earlier regarded as a middle class standard
of living.

Impact of globalization on the working class:

Nehruvian socialism focused on prevention of concentration of wealth, ensuring decent

standard of living for workers, and developing a socialistic pattern of society. Consequently,
the Indian state in the pre-reforms period created a robust web of labour laws to secure the
interests of workers; ranging from minimum wage legislation to regulating the conditions at
workplace. The workers had a strong ally in the form of a socialist state in their disputes with
the management. The government also ran many large companies and strove to be a model
employer.

Globalization, however, is based on the neoliberal ideology - it reduces the role of the
government and promotes a greater role for the private sector in the economic life of the
country. Private sector emphasizes on profits and efficient use of human resources.

Biswajit Ghosh suggests that globalization poses serious challenges to the working class.

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1. Privatisation of PSUs or government companies has led to retrenchment and loss of

social security. Informalization of the formal sector leads to increase in numbers of
the informal workforce.
2. New technologies at the workplace put challenges to workers to upgrade their skills.
3. Informalization of the formal workforce threatens their financial and social security.
4. There is pressure on the Indian state to reform and loosen India’s labour laws to
improve ease of doing business.
5. The broad consensus across political parties regarding economic reforms makes it
difficult for trade unions to challenge unfavorable policies because of linkages to
parent organizations.
6. Arjun Sengupta committee pointed out that globalization has been a period eriod of
jobless growth. While economy is growing at a fast pace, adequate job opportunities
for workers are not being created.
7. Indian workers compete with workers in other locations; so they must regularly
upgrade their skill sets.

Globalization has also impacted Indian workers positively, as follows:

1. Reduction in child labour in India due to international focus on child rights.

2. The international labour rights regime and ILO conventions and standards serve as a
benchmark for labour legislation and rights in India as well. In fact, India is a signatory to
many ILO conventions.
3. International mobility of workers raises new opportunities as well as new challenges.

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Labour Codes:
4 labour codes have been adopted recently:

1. Wage code: It universalizes the provisions of minimum wages and timely payment
of wages to all employees irrespective of the sector and wage ceiling and seeks to ensure
"Right to Sustenance" for every worker and intends to increase the legislative protection of
minimum wage.

2. Social Security Code: It proposes a National Social Security Board which shall
recommend to the central government for formulating suitable schemes for different sections
of unorganized workers, gig workers and platform workers. Also, aggregators employing gig
workers will have to contribute for social security of workers.

3. Occupational Safety, Health and Working Conditions Code: For the inter-state migrant
workers; it has proposed a journey allowance, a lump sum amount of fare to be paid by the
employer for to and fro journey of the worker to their native place from the place of their
employment.

4. Industrial Relations Code: It introduces new conditions for carrying out a legal strike. No
person employed in any industrial establishment shall go on strike without a 60-day notice.

Analysis of labour laws: Many provisions of the earlier labour laws traced their origin to
the time of the British Raj. However, with changing times, many of them either became
ineffective or did not have any contemporary relevance. Rather than protecting the interests
of workers, these provisions became difficulties for them. The web of legislations was such
that workers had to fill four forms to claim a single benefit. Therefore, the Government has
repealed the non-useful Labour Laws. Now 29 Labour Laws have been codified into 4
Labour Codes.
The central government claims that this will have positive and far reaching effect on workers
and nation building. These labour reforms will enhance Ease of Doing Business in the
country. Employment creation and output of workers will also get enhanced. The benefits of
these four Labour Codes will be available to workers of both organized and unorganized
sector. As the new labour codes will simplify compliance with the labour laws, it will boost
industrial productivity. This will also attract more investment, thereby creating more job
opportunities for the workers.
However, K. R. Shyam Sundar contends that the labour codes are disaster. On the pretext of
improving the ease of doing business, the government is pushing back industrial relations in
the day dark days of unilateralism, reminiscent of the colonial era. In the long run, the labour
codes will not even benefit business. If there is a threat to labour security and labour rights; it
will lead to labour unrest.

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