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Social Stratification
Notes • The domestication of modernity in India has a trajectory not unlike that of the taming of the
shrew; and, indeed, many educated (male) Indians would attribute to modernity, qualities
not dissimilar to those borne by that hapless Shakespearean wench. Technology is the only
arena where the middle class Indian feels comfortable with modernity. And then he has to
domesticate it annually through worshipful puja every Dussehra. In all other areas,
particularly to do with social interaction, the middle class Indian speaks only the language
of caste, kinship and community.
• “Sources” and “contacts” are the ways to negotiate the professional world and kin whispers
to kin about the possibilities of “finding something” for one of their own. The use of
connections to gain employment, favours and benefits is rampant among the middle class
and it rarely enters a secular arena, whether government office or corporate house, without
hawing first found out who is the best person (in caste/regional/kinship terms) to “approach”
there.
• The growth of the middle class and the economic growth of India are in a virtuous cycle.
Rising incomes lead to more consumption, which in turn leads to higher economic growth,
then more employment opportunities and subsequently higher wages and the circle starts
again.
• Thus, as the middle class grows and continues to increase domestic demand, the economy
will also continue to grow. In terms of consumption, real private consumption (including
both households and private companies) accounts for approximately 55% of GDP.
• The middle class also demands better healthcare and education. In addition to the benefit of
strengthening human capital stocksl0 and thus productivity, this also leads to more private
expenditure on healthcare and education and thus improvements in existing infrastructure.
In fact, the CLSA survey of middle income and upper-middle income behaviour showed that
education was the third largest household expenditure behind essentials such as rent/
mortgage and groceries.
• The middle-class is also increasing its share of financial investments and thus providing new
sources of capital for companies. Although household savings and investment rates as a per
cent of GDP have remained relatively the same over the past several years, investment in
shares and bonds has risen over the past several years.
• 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.
• 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 neighbours 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.
• 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.
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