Question: How big is India's middle class?
Answer:
5% (Yes, only
five percent)
2001:
NCAER| Income Class | Monthly Family Income* | % of Total Population |
| Poor | < Rs 7,500 | 72% |
| Lower Class | Rs 7,500 – Rs 17,000 | 22% |
| Middle Class | Rs 17,000 – Rs 85,000 | 5% |
| Rich | > Rs 85,000 | 0.5% |
2005:
McKinsey| Income Class | Monthly Family Income* | % of Total Population |
| Poor | < Rs 7,500 | 54% |
| Lower Class | Rs 7,500 – Rs 17,000 | 41% |
| Middle Class | Rs 17,000 – Rs 42,000 | 4% |
| Upper Class | Rs 42,000 – Rs 85,000 | 1% |
| Rich | > Rs 85,000 | 0% |
McKinsey also makes forecasts for the relative sizes of the different income classes for the years 2015 and 2025:
| Income Class | 2015 | 2025 |
| Poor | 35% | 22% |
| Lower Class | 43% | 36% |
| Middle Class | 19% | 32% |
| Upper Class | 1% | 9% |
| Rich | 1% | 2% |
So McKinsey's picture is roughly like this:
| Year | Middle Class | Lower Class | Poor |
| 2005 | 5% | 40% | 55% |
| 2015 | 20% | 45% | 35% |
| 2025 | 40% | 35% | 20% |
- Middle class will increase from 5% to 40%.
- Poverty will go down from 55% to 20%.
- Lower class will hover around 40%.
*
The original data gives the annual incomes. I have converted them to monthly incomes, and rounded them off.
