Households with an annual income below Rs 71,000 are categorized as lower income ones, numbering 40 million.

Households with an annual income above Rs 3 lacs are categorized as the higher income ones, numbering 43 million.

(Figures are approximates as per a recent survey)

Few facts are important: -

• The Middle income Group is much larger than the combined number of the other two income categories.

• As India has rapidly progressed since 1990, there has been an upward shift from the lower income to middle income and from middle income to higher income households (population)

• Since the ‘Middle Class’ is very large, within this classification also there are sub classifications as per the income levels.

  This large populace gives India a unique identity and marketers a large consumer base. Despite India’s diverse  culture most of the MIDDLE CLASS VALUES are common across the country.

• The Middle Class is cautious, careful and conservative.

• While there is good literacy level and increasing awareness of the New World without Boundaries and Globalization, middle class would still like to preserve what they have.

• The family seniors have worked for most of their lives holding on to their dear jobs and hence are very pro Government Service.

• Stability and surety of income is very important to them.

• They have gone through the gradual cycle of acquisition of consumer durables and assets and believe in the same principle.  (They worship on buying the first motorbike or small car and paint religious symbols on them!)

• They have learnt not to take good times for granted and would like to save and re-use.

• They use polythene covers on all new furniture items and the car seats, till the children force them to part with the same.

• They are great votaries of good education for their children but would still recommend Engineering and Medicines as the top professions.

• The younger population has started exploring new career options and a large percentage of urban youth are engaged in B.P.Os, Retail, Insurance and Telecom sectors. This has brought lot of disposable income in their hands and hence the ‘ Brand’ consciousness and the ‘Café’ culture.

• Parents are very proud of their working children and do fuel their aspirations, but are at best Cautiously Optimistic of their grand plans. (They are somewhat vary, lest the good times do not last)

• The Power of Prayer is held to be sacrosanct. Rituals, Customs and Mores are important. Festivals and Marriages are great occasions for the family get together (All somewhat diminishing in the urban areas)

• Opinion of the neighbors and social groups is still very powerful.

• Mothers will always eat after feeding the children and the husband. They would insist on handing over home made food Tiffin to the four or five figure salary earning children, who obviously are more comfortable in being seen to with the times and by ordering a Pizza or Burger. (This does not however faze the doting mothers)

• A study published some time back in India Today stated that children still spend maximum time at home and are deeply influenced by their parent’s opinions (Though none of the two generations would readily agree to this!).

• In a manner of speaking, parents are still their best friends!

• Marriages are made in heaven and are for life. Even the NRI children would mostly rely on their mother’s opinion for the best match (Though most of them will claim differently!)

• Home made remedies are used with greater faith than the allopathic medicines (Gargles for sore throat, Turmeric in milk for the hidden injury and Garlic for lowering B.P)

• While eating in a restaurant, they will order dishes that the family can share and think nothing of eating from each other’s plate.

Middle Class Values are shared Family Values, which are a great bonding factor. These are based on Pragmatism. They suggest Achievement and Consolidation rather than the Unsustainable Exponential Spiral. More Power to The Indian Middle Class.

Are you not proud to be an Indian ?
- ARUN VEDHERA

1.It comprises of people who are survivors, though somewhat diffident, conservative and mostly conformists.

2.They believe in God’s grace and want to hold on to what they have. They are risk averse . More Bank Fixed Deposits than Stocks and Shares.

3.They want secure jobs ( preferably  government jobs ) and have learnt to manage within their means. They have learnt to ‘Cut their Coat according to their Cloth’

4.They are thrifty-Indian saving rate at 28% of GDP is one of the highest in the world.

5.They want to give good education to their children and live their dreams through their progeny .They talk endlessly of their U.S and U.K based children while worrying if their children are eating well and not getting corrupted by the outside influence.

6.While justifiably  proud of their well-to-do children  , they are uncomfortable with girls going out at night and the present lesser clad children.

7. Their daughters-in-law save time by spending money while the mothers-in-law have always saved money by spending more time (cook wholesome food at home rather than order fast- food)

8.They believe in God and are reconciled to their destiny .While they listen to grand plans of their children, yet are always apprehensive.

9.They are getting accustomed to modern technology, but still keep their Fixed Deposit Receipts laminated and safe, trusting the bank and post office pass-books more than internet accounting.

10.They are the products of households where younger children accepted hand- me- downs and always affectionately wanted to get their father’s coat altered to their size on growing up. They believe in save and re-use.
Today’s use and throw culture deeply upsets them.

11.They believe in Value-for-Money.

12.They are best represented by the middle middle-class, who buy branded apparel, but at discount sales ( preferably  winter clothing at the season’s end, at bargain basement prices) , who go to see movies at the multiplex but in the morning shows at discounted rates, who comfortably fit in ( a large family) in a small car ( with a large heart ).

13.They manage to live in rented accommodations (if possible, government or company provided) and construct houses against Provident Fund and life Insurance loans. They DO NOT live on E.M.I s and still pay cash for their shopping.

14.God Forbid, if the bread earner was to lose the job ( which will mean depression and a feeling of disaster )  the homemaker can mange to keep the kitchen fire still burning for a few months by dipping into below -the-mattress-money .In such cases they will profusely offer prayers to the God of their understanding and ultimately leave everything to the Higher Power.

15.They do get snubbed for their middle-class mentality and values by their better-off children and relatives, who want to upgrade their living standards exponentially.

The giant multinational corporations salivating at this large target audience sank in huge amounts in standardized shopping malls, which have attracted foot- falls and eye-balls, but have seen flat sales, in fast-food chains, which struggled till they brought the prices down and customized their food offerings. Ultimately the global consumer goods giants recognized that the middle-age middle-class person still drinks the cola or lemon drink from a bottle, will buy a car based on fuel consumption and will take a cautious and conservative route. Of course the Corporations are lucky in so far as India has the youngest population in the world and hence cold drink cans and flat screen TVs have a chance.

Conclusion

In the global economic meltdown of today, India is relatively safe due to our conservative and cautious policies and the stoic middle class values, with deep faith in the Higher Power.

More power to the Middle-Class. May the economically backward rise to the middle-class level.

Arun Vedhera

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