What Constitutes Middle Class in India? Income, Education and Other Details Explained

The definition for middle class is not clear as different economists suggest different range. They have different views on this because they see things from different angles. The concept is broader and more than just income. It includes factors like salary, education, occupation, lifestyle, and aspirations.

Why there is no fixed income range for middle class?

Globally, multilateral agencies define different class on the basis of purchasing-power-parity (PPP) dollars per person per day—apples-to-apples across countries. It tells how well Indian households would live if they are shifted to a dollar-priced economy. On the other hand, in India, it is normally measured in current-price household rupees, matching what Indian families actually earn and spend. It explains who can afford which lifestyle inside India, where rents, school fees and street food are priced locally. Each measurement has different aspect.

Middle class on the basis of income

There is no official definition for middle class in India. Based on analysis of different organizations like Pew Research, World Bank, and Indian think tanks (like NCAER), it can be said that households whose annual income is in between ₹3 lakh and ₹50 lakh are generally part of middle class in India.

Education of middle class

Most of the middle-class Indians generally have at least a graduation degree. Many have professional qualifications like BTech, MBBS, CA, and MBA etc. Private English-medium schooling or international boards for children is very common.

Occupation of middle class

Middle class participates in various occupations. They are normally found as salaried employees, professionals, Small business owners or entrepreneurs, Junior and middle management roles and Self-employed.

Lifestyles of middle class

• Owning two-wheelers or cars

• Living in owned or rented apartments

• Having easy access of internet, smartphones, OTT platforms

• Spending on private healthcare, insurance, and children's education

• Holidays (mainly domestic but sometimes international)

• Preference of branded goods but still price-sensitive

Other habits and aspirations of middle class

• Investment: Regular savings, SIPs, fixed deposits, insurance.

• Health: Private health insurance is preferred.

• Focus: Main focus on educating the next generation for better opportunities.

• Cultural: A balance between traditional Indian values and modern lifestyles.

Division of middle class:

Middle class can be further divided as follows:

Income basis:

• Lower Middle Class: Household income between ₹3 lakh to ₹6 lakh per annum (₹25,000 to ₹50,000/month)

• Core Middle Class: Household income between ₹6 lakh to ₹18 lakh per annum (₹50,000 to ₹1.5 lakh/month)

• Upper Middle Class: Household income between ₹18 lakh to ₹50 lakh per annum (₹1.5 lakh to ₹4 lakh/month)

Social basis:

• Educated middle class: They have specific educational qualifications, various skills and permanent employment.

• Traditional middle class: Small businesspersons, farmers, and those engaged in art and culture come under this category because they are engaged in the similar type of livelihood.

• Emerging middle class: They enjoy city life and advanced technology. They also spend mainly on consumer goods.