In a country quite as large as India, it’s hard to identify anything that actually counts as being in the “middle.” Yet most of us claim we are middle-class, no matter where we fall within the spectrum, whether compared to its peers in the group in India or the globe. Explicating through the lifestyle point of view, earlier reasons like children’s education, high aspirational value of getting good government job, sound income through a life partner, worrying rising prices and increasing expenditure of medical costs labelled the middle class.

The inside story

But now the new ‘middle-class’ is created by the forces of industrialisation and urbanisation. National Council of Applied Economic Research defines middle class using real annual household disposable income between Rs 200,000 and Rs 1 million. In the recent times, the three structural changes occurring in Indian service-sector leading to the economic growth, the rapid expansion of urbanisation and higher education are undoubtedly resulting in a massive expansion of the middle class. Young professionals who hold high positions in MNCs have also boosted the section majorly. The spending capacity of these professionals is now at par with the elite class. Even, changing mind-set and high aspiration have led to a reorientation of middle-class.

“It’s good to grow with a growing child that is a real sign of a developing country. Being a parent I was always bothered about savings, for a rainy day but now I have learnt from children to live for the moment far away from the stereotypes. I spend on things that I love, and the feeling is itself a luxury.” avers Anju Sharma, a senior teacher of DAV Centenary Public School, Rajasthan, the thought in reality reflects the changing perspective of the middle class in India.

Consuming luxury and leisure market

One will find scores of millennials who live with their parents in simple middle class homes – sporting entry point luxury brands such as Tag Heuer, carrying Michael Kors bags, and wearing Zara outfits. These aspirational folks earn enough to afford luxury but with limited family responsibilities, they love spending on them. These kids of middle class parents are exposed to luxury brands through frequent travelling abroad or through their peer groups, a phenomenon of growing diversity in the luxury consumer base called “The Shock of the New Chic“.

“I don’t spend money lavishly but I spend on lavish things! I even have a fetish for luxury travel. Earlier women bought jewellery on every occasion but now, women on those occasions prefer to plan a trip abroad”, is broadly a style statement of most young, smart adventures middle class millennials.

We as Indians are known as wise savers rather than spenders, but travel industry professionals have noticed a change over the time. The shift towards travel is being driven by the country’s middle-class, as even being claimed in a report by Deloitte and it is best exemplified by the newlyweds. It seems over the years 60% of newlywed couples in India choose to travel for their honeymoon or spend on a vacation abroad. This had apparently, led the domestic travel to increase 17.8% from 2013 to2016.

Education Overseas

Another sign of growing spending by middle class is its quest for education abroad. American Standard Code for Information Interchange report, on Indian education states that, it’s not just the elite who spend generously on good education institutes but also the middle-class, which annually spend around US $6-7 billion on their children education abroad. We are living in the 21st century and this is an era of growth. Savings are not too important, one wants to live a lavish life on plastic money, and believe in making memories.

This is just the beginning, the new middle class parents and children are now far removed from the shackles of guilt of good times. There are many reasons to believe that this assumption is realistic. The outlook depends strongly on continued long term economic growth of the country. It is truly elating to see the middle class create its self identity, but did anyone gaze at the negative implications of the growing middle class? Should we dwell on it or let it pass this time for anticipated good times? This is the earned freedom and we enjoy it by splurging in expansive luxury. During the first millennium merchants referred to India’s glittering and dynamic growth as the “bird of gold”. That bird is preparing to take flight again.