Introduction:

Middle class has been an important historical and sacio-logical category in India. The idea of India as a
modern and popular nation state was Imagined and articulated by the imperative middle classes during
the after phase of the British social rule. Over the last two decades, the Indian middle class has been
celebrated for its profitable achievements in the new global economy. It has also been expanding in size,
providing critical market base to the process of economic growth and stability to democratic politics,
India as it stands today is a construct of its middle class.

The term ‘middle class' refers to persons and household who, in a socio-economic structure, fall
between the Upper class and the working-class. Persons in the middle class have further educational
qualification disposable money and may own property than the working class, but fairly lowered than
the upper-class Middle-class people are constantly employed as professionals, managers and public
servants. This social order over time has expanded in its size and political influence and has come to
acquire the Male of the primary articulator and representative of the interests of the masses. These
classes have and have had a significant impact upon the polity , policy and economy of India since
independence.
"In 'Rise of the New middle class in India and its changing nature’ by sandhya Krishnan & Neeray Hatekar
discussed after being largely stable between 1999-2000 and 2004-05 the new middle class in India
doubled in size between 2004-05 and 2011-12, amounting to nearly half of India's population...

Role of middle class in economic development

Natalie Chun, Rana Haran, and Mehmet ulubosogalu in their research paper ‘The Role of the Middle
class in economic development: what do country data show? 'Raised the question 'Do countries with a
larger middle-class grow faster? Several economists believe that the answer to this question is in the
affirmative.
For illustration kharas and Geretz (2010) compare the growth experience of Brazil and the Republic of
Korea and suggest that the discrimination performance of the two countries can be explained by
differences in the sizes of the middle class in the two economies

Banergee and Duflo (2008) argues that a country with larger middle class grow faster for which they
identify three arguments that are commonly made.
1. The first argument was that the middle class is where entrepreneurs that foster invention and
growth crap from.
2. An alternate argument stress middle class 'values' that encourage accumulation of mortal
capital and savings.
3. A third argument suggests the consumption power of the middle class leads to diversification
and expansion of markets, which allow for the exploitation of economies of scale in production

One of the first cross country studies focusing extremely on the middle class. Easterly's work is based
on the concept of a ‘middle class consensus’, which is defined as the coexistence of a higher share of
middle-income groups in the income distribution and a laver degree of ethnic conflict in society. Easterly
argues that the lack of a middle-class consensus leads to polarization in society, paving the way for a
struggle over resource endowments and ultimately resulting in power broad based Investments in
human capital by the elite groups who hold the power.
Banerjee and Duflo (2008) identify several arguments about why the middle class is important for
growth.
1. First, to the extent that entrepreneurs generally crap from the middle class, they include
Increases in productivity and employment fare society
2. second ‘middle-class value’ emphasize mental capitalist accumulation and savings.
3. Third, they not only consume more than the poor, but they are also willing to pay a little extra
for quality.

The middle classes constitute a critical market for most goods and services. A large portion of any
nation's tax revenue is collected either directly or indirectly from this group, and that they also have an
Important in any relative political stability that a country experiences.

The significance of this class was best aculeated by the late Lester Thurow, the eminent MIT economist,
A healthy middle class is necessary to have a healthy political democracy A society made up of rich and
poor has no mediating group either politically or economically.

This concept captures the thought that the middle class may be important not only for its consumptions
power but also through its ability to make political and economic action group that demands and
implements policies that can contribute to market orientation growth. Private consumption is nearly
60% of the GDP, and personal consumption growth has accounted for 70% of Indian growth since 2000.

Ashok K Lahiri in his paper ‘the middle class and economic reform’ mentioned that the middle class is
the basis of a strong and functional democracy.

New middle class also known as fluctuating voters, whose voting preferences keep changing according
to the party agenda. As a well educated section, new middle class is aware of their rights and thus put
check on the government, in this way they lead to the realization of liberal democracy.

1.Sound Voting:-Irrespective of their identity of caste, class and religion, they have similar aspiration and
consequently they vote on the issues of development, health, education, infrastructure and basic
necessities. They are also known as fluctuating voters whose voting preferences keep changing
according to the party agenda.

2. Liberal Democracy:-Limited government is the uniqueness of liberal democracy i.e. check on the
powers of executives, but it is not possible with ignorant masses who are illiterate, however NMC is well
educated they are well aware of their rights and thus put check on the government, in this way they
lead to the realization of Liberal democracy.

3. Realization of Federalism:-It is the division of power between the levels of government i.e. State and
Central level, before the regional aspirations are needs were subdued in the elections, due to
unawareness people were confused they voted for central party even in State Elections, however with
the rise of New Middle Class, the trend has been changed, this group is educated and can easily
differentiate between State and Central Elections, in this way they helped in the realization of
Federalism, Recent Elections in States like Punjab, Chhattisgarh, Rajasthan, Madhya Pradesh and
Jharkhand people voted for different parties but on contrary in Lok Sabha Elections they voted for BJP.
4. Political Participation:-New Middle Class play an active role in Indian Democracy in this way they the
political participation has been increased. They know the value and power which lie in each and every
vote, thus they exercise their voting rights and elections are often considered as festivals.

5. Tolerant Democracy:-New Middle Class is well educated and has liberal values they acknowledge the
rights of each and every group of society. They believe in Multiculturalism and Pluralism, thus they
promote tolerant democracy.

6. Check on Public Policies:-New Middle Class can easily assess the Pros and Cons of each public policy as
they are enlightened masses who are well educated, which lead to political discussions and result in to
deliberative democracy

Develpoment of middle class

The middle class in India:

The elaboration of Indian middle-class com be traced during the colonial era, that was the time, which
marked the morning of this new class identity. The Britishers over the two centuries Introduced modern
Industrial economy, secular education and a new administrative framework.

The middle class in India 1947-1990

India achieved independence from Great Britain in 1947. The nature of the middle class in the decades
after independence was constantly that of a paid and professional class, with direct engagement in
trade, commerce, industry and but with limited financial resources and abundant institutional
advantages. It gained its authority largely from the state's relative autonomy throughout this time
period. The size of the middle class remained relatively small it comported primarily the roughly five
million workers substantially in the public, state and local Divisions of the government in the 1950s.
New middle class The 19708 and 1980s saw a move toward a mixed economy with the private sector
adding a big number of jobs as well. The colonial middle class from the days of British rule former to
1947 was slowly transformed into as new middle class who increasingly began being defined in terms of
consumption behavior, with the country Moving gradually toward a market led capitalist economy

The growth of the middle class : 1991-2015

During this time, the discourse about the Indian middle class undergoes a paradigm change. The new
middle class which forms the social foundation of a market ted capitalist economy, is increasingly
characterized and analyzed in terms of its consumer behavior. The lens of consumption as the defining
attribute of the middle class, on the other hand tends to compress it to a single income group. The term
'middle class' encompasses a bigger range of people them the term income group.
Economic liberalization resulted during a significand shift in the size and character of India's middle class
The entire number of people in the middle class approximated thirty million in the 1990s, or more than
1 percent of the papulation. By 2015, the dimensions of the middle class in India were between 300 &
600 million, according to Deutsche Bank research, In 2015,

Middle class in India & 2005-2050

The middle class population within the country is expected, to grow rapidly in the next decade Most of
middle-class consumers Currently live in the European Union and the United States, but over the next
decade, the majority will shift heavily toward China, India and others Asian countries excluding Japan. By
2085, one in four middle class consumers are expected to reside in India

factors of emergence of new middle class:

The rapid growth of the Indian economy over the past three decades has led to a substantial expansion
of India's middle class. This has triggered a strong debate over who in India belongs to the middle class,
its size, composition and political and social behavior

1. Economic reform in 1991 was the main reason behind the emergence of New middle class.
Liberalization privatization and globalization resulted into inflow of foreign direct investment & foreign
Institutional investment which led to the growth of employment and news middle class emerged.
2.open up of reservations for the other Backward Clas (OBC) in government jobs. OBC group consist of
the largest papulation In India, the reservation helps them to take jobs in government sectors and In
educational institutions which led to the emergence of new middle class
3. growth of tertiary sector also known as service sector like private banks, Restaurants,
telecommunication etc. which provided the employment opportunity to people, their Income become
between 2 lakh to 10 lakh per year and they became the part of New middle class.
4.the quality of education improved In India, which led to the skilled workers as well as professionals,
their income is quite high around 5-6 lakh per year and they became the part of new middle class.
5.Due to globalization, people got employment in middle east, Europe and in America, which resulted in
the growth of New middle class.

Role of new middle class in economic growth and social progress: