To open the first of three parts in the topic about the rise of India’s middle-class, I figured the best place to start is a lesson in its history up to the late 20th century. Prior to the 1980s, India existed within its own walls, somewhat isolated from the rest of the world. They valued their own culture and traditions and simply went about life without external influence from countries in the western world. Imagine a household where the father would go to work, make a livable wage, but only just livable. There was no such thing as disposable income for the average Indian family. The pleasures enjoyed by the average citizen were simple and cheap, as not much was left over. However, with the rise of globalization and educational opportunities abroad in the mid 1990s, all that began to change.
By the mid 1990s, Indian people had begun to explore the world by travelling, working, and attending post-secondary institutions abroad. This increase in international travelling began with the younger demographic such as those in their early 20s. They would travel to countries like the United States or England to study and earn degrees and then work in those fields, which earned them incredible compensation. Since this income was magnitudes higher than the average working-class wages in India decades prior, they would often have enough income to help their overworked parents retire and live in more comfortable settings. But this was just the tip of the iceberg.
The middle-class was growing at a rapid pace, and was increasingly getting younger, but also bolder. Until this rise began, the culture was very traditional and reserved, but with globalization, the veil was lifted over the eyes of Indian youth to the worldwide possibilities. One such realization was technology. It comes as no surprise nowadays that Indian culture houses the world’s IT hubs, but how did that come to be?
In the midst of their travels, Indians were absorbing the digital age like water in a desert. They jumped on it with tremendous intrigue and excitement, whether it be the latest computer technology or now the latest cell phone, the Indian middle-class wanted to understand it and control it. This interest fuelled the vocational journeys for much of the rising middle-class population in India, which gave rise to some of the most successful technological companies we know today. For example, India’s 5G networking capabilities rival the best in the entire world because of this expertise. Furthermore, the middle-class indulged heavily in international cuisines, which at one point put a strain on global food supplies in the early 2000s.
This hunger for knowledge and adventure is what has contributed now to a middle-class that will soon represent 55% of India’s total population. The private consumption of India’s people, spearheaded by the middle-class, represents 60% of India’s GDP. So, it is clear how monumental the middle-class has been to India’s rise in global prestige over the past 30 years.
While the effects of the middle-class have been enormous to India’s society, they are not the only benefactors. Join me next Monday for Part 2 as I discuss the impact that the rise of India’s middle-class has had on the rest of the world.