1.4 billion People out of which around 70 million are middle class, whose spending power has increased leaps and folds in recent decade. These middle class youngsters are earning more and more early in their life as compared to their previous generation, youngsters are earning twice or threes then there dad/mom. These people are spending more to buy things on one hand and from other hand they are contributing to the higher production rates, increased GDP etc...
Because younger generation is fulfilled with basic needs at earlier age, they are doing more out of box thinking, which in turn support entrepreneurial activity in the country. This has enhanced entrepreneurial and intrapreneural activities across the country, like RIL getting into retail sector, while traditionally they are part of petroleum products and garment industry or like small ventures CCD, changing the way we drink coffee.
Because at a younger age, people have more money, more and more un-united, single families are being created which is enriching real estate MetaMarket since every family is capable of demanding its own house, car etc... This in turn has created more jobs for under privileged classes like house made etc...
People are becoming more health conscious, backed up by their spending power; this is enriching businesses like health insurance, fitness centers, hospital and so on... not to mention which will again create more jobs for the same middle class people...
The trend has forced the center and state governments to make policies that will support the ongoing middle class economic revolution. As an example, today we have education loans available from nationalized banks without any mortgages which was no thinkable a couple of decades ago, only because unless people get good education they cannot add value to the economy.
Education sector is another major beneficiary of these changing demographics, from few handfuls of IITs or NITs, today we have virtually uncountable number of technical education institutes and mostly all are having good number of students enrolling into their institutes. Fields like Animation, mass media which were un heard when I was joining college are now getting a lot of recognition, all thanks to knowledge led economic activity in country. I am a lecturer in one college and student in same or other college, again the same middle class men/women are consumers as well as suppliers.
Foreign investment policies are being modified to be able to get those commodities from other countries which are mostly appealing to the middle or upper middle class people. Today we have competition in every sector, from baby dippers to smart phones, so we do have Max mobile phone and Apple phones selling in same store. More foreign investment means more competition which means better products/services available to people of country. In a rush to provide better products/services, more SMEs are flourishing every year, each having its own product differentiation. Again owner of an SME making computer mother boards is also a consumer of Nokia phone, so middle class is driving the economic resolution as both consumer and supplier.
We never had malls and AC shops in Bangalore in early 1990s; we use to buy things from traditional bazaars, sweating our way out of crowded roads. The younger generation wants to spend their weekends at a better place, only recently people are recognizing value of ambiance, which is driving meta markets like malls, resorts, adventure sports, in turn supporting another million or more jobs.
Even though critics argue that this changing economy is affecting our culture, family values and so on, I agree to the fact that Change is inevitable! We will learn to take care of our new born babies because grandparents are not willing to leave home town…. :-)
Thank You for reading!
