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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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