Middle Class Moment
Business World India|17 June 2023
HOW BIG, REALLY, is India's middle-class? It depends on how you define middle-class: by income or by consumption.
Minhaz Merchant
Middle Class Moment

Foreign companies look at both parameters. They know that by income in purchasing power parity (PPP), the Indian middleclass has an urban bias though rural India is fast catching up. But when measured by consumption across a range of goods and services, India's middle-class is large and growing.

Let's look at the data. According to the 2011 Census, 63.2 percent of Indian households owned a mobile phone, 47.2 percent owned a television set, 21 percent owned a two-wheeler, and 4.7 percent owned a four-wheeler.

Since the 2011 Census is outdated, it reflects Indian ownership - and consumption - more than a decade ago. So turn to the more recent 2019-20 NFHS (National Family Health Survey).

According to the omnibus NFHS, 93.3 percent of Indian households own mobile phones, 67.8 percent own television sets, 49.7 percent own two-wheelers, and 7.5 percent own four-wheelers.

Even this data is nearly four years old so ownership numbers in these key categories would have risen, especially in two-wheelers, cars and SUVs. Clearly the optimism of foreign companies - in domains ranging from automotive and electronics to FMCG and white goods - appears justified.

In an interview with Britain's Financial Times (owned by Japan's Nikkei group), Masanon Togawa, CEO of the leading white goods company Daikin, said: "India would turn into a market as giant as China in the future, as the middle-class and the wealthy are growing tremendously."

The Caveat

This story is from the 17 June 2023 edition of Business World India.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the 17 June 2023 edition of Business World India.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM BUSINESS WORLD INDIAView All
Powerful, Peculiar Perquisites
BW Businessworld

Powerful, Peculiar Perquisites

MOST COMPANIES recognise that people are key to their success. Competition is all about the war for talent. Higher compensations can, in many cases, attract that brilliant leader or the tech genius, but a competitor may well offer even more. This race is financially draining and not really a great strategy.

time-read
2 mins  |
May 18, 2024
Shaping The Future Of India's Infrastructure
BW Businessworld

Shaping The Future Of India's Infrastructure

RUPEN PATEL on the achievements of the engineering and construction major including the iconic projects rendered by it, nation building, focus on sustainable practices and much more

time-read
1 min  |
May 18, 2024
WHY DON'T WE SUE BRITAIN?
BW Businessworld

WHY DON'T WE SUE BRITAIN?

I WAS WORKING ON my next column for BW – on one of my favourite themes like ‘Sustainability’, ‘Inclusivity’, ‘India Shining’ etc.

time-read
2 mins  |
May 18, 2024
LIFE AND TIMES OF A MEDIA TITAN
BW Businessworld

LIFE AND TIMES OF A MEDIA TITAN

DD Purkayastha's autobiography captures his 42-year tryst with the ABP Group, delving into various aspects of his professional and personal experiences, as well as insights into the factors that have shaped his character and career trajectory

time-read
4 mins  |
May 18, 2024
THE SONET STRIKES BACK
BW Businessworld

THE SONET STRIKES BACK

The sub-4-metre SUV segment in India has been a battlefield for automakers, each vying for supremacy with their unique propositions. With the launch of 2024 Kia Sonet, the South Korean automaker is sharpening its edges in this competitive market

time-read
3 mins  |
May 18, 2024
SLEEK, SUBTLE, COMPACT AND EASY TO CARRY
BW Businessworld

SLEEK, SUBTLE, COMPACT AND EASY TO CARRY

The HP Omen Transcend 14 targets a niche market that is growing day by day. Statistically, never in history, was there a better time to launch a gaming laptop, says Deep Majumdar

time-read
5 mins  |
May 18, 2024
Geopolitical Resilience for Indian Companies
BW Businessworld

Geopolitical Resilience for Indian Companies

It's in crisis that inventiveness is born, as well as discoveries made and great strategies arise. He who overcomes crisis, overcomes himself, without getting overcome. - Albert Einstein

time-read
4 mins  |
May 18, 2024
The Sourav Ganguly Era
BW Businessworld

The Sourav Ganguly Era

Lessons in Leadership from Indian Cricket - 2

time-read
5 mins  |
May 18, 2024
Leadership Challenges Were Not This Long, Before
BW Businessworld

Leadership Challenges Were Not This Long, Before

LEADING IN TODAY’S dynamic environment presents unprecedented challenges. The list of challenges is never-ending. They include navigating complex decisions, staying resilient, inspiring teams, staying innovative, and continually adapting to the constantly changing ecosystem.

time-read
3 mins  |
May 18, 2024
The Supreme Court Emerges as a Net Zero Polestar
BW Businessworld

The Supreme Court Emerges as a Net Zero Polestar

'Dharma exists for the welfare of all beings. Hence, that by which the welfare of all living beings is sustained, that for sure is dharma,' - Mahabharata (Shanti Parva 109.10)

time-read
4 mins  |
May 18, 2024