In recent years, the terms "middle income" and "middle class" have often been used interchangeably, but they actually refer to two different things. Middle income refers to a person's or household's level of income, while middle class refers to their social and economic status. In India, these two terms have different meanings and are significant in determining the economic growth of the country.
Middle Income:
The middle-income group is a section of society whose income falls between the lower and upper income groups. It is usually measured in terms of per capita income or household income. According to the World Bank, a person with an income of between $1,036 and $12,615 per year is considered to be in the middle-income group. In India, the middle-income group is defined as households with an annual income between INR 7.5 lakh and INR 15 lakh.
According to a recent report by the National Statistical Office (NSO), the per capita income in India in 2020-21 was INR 1,27,768. The report also revealed that the per capita income of the middle-income group increased by 9.2% in the same period, from INR 1,77,111 in 2019-20 to INR 1,93,504 in 2020-21. This indicates that the middle-income group is growing and becoming more prosperous.
Middle Class:
The middle class refers to a group of people who have a certain level of education, income, and lifestyle. They are typically employed in white-collar jobs and have access to a range of amenities and opportunities. In India, the middle class is defined as households with an annual income between INR 6 lakh and INR 18 lakh.
According to a report by the Pew Research Center, the middle class in India accounted for 52% of the population in 2019. The report also revealed that the middle class has grown rapidly in India in recent years, with the number of middle-class households increasing from 49 million in 2001 to 140 million in 2017.
Difference between Middle Income and Middle Class:
While the terms middle income and middle class are often used interchangeably, they are not the same thing. A person or household can be in the middle-income group without necessarily being part of the middle class. Similarly, a person or household can be part of the middle class without necessarily being in the middle-income group.
The main difference between the two is that middle income refers to a person's or household's level of income, while middle class refers to their social and economic status. The middle class is often associated with a certain level of education, lifestyle, and consumption patterns. They are usually able to afford a range of amenities such as healthcare, education, and housing.
In India, the middle-income group is growing and becoming more prosperous, but there is still a significant gap between the middle-income group and the middle class. According to a report by the Reserve Bank of India (RBI), only about 30% of the middle-income group is part of the middle class.
Conclusion:
In conclusion, the terms middle income and middle class are often used interchangeably, but they actually refer to two different things. In India, the middle-income group is defined as households with an annual income between INR 7.5 lakh and INR 15 lakh, while the middle class is defined as households with an annual income between INR 6 lakh and INR 18 lakh. While the middle-income group is growing and becoming more prosperous, there is still a significant gap between the middle-income group and the middle class. As India continues to develop, bridging this gap will be crucial for the country's economic growth and development.
#MiddleIncome #MiddleClass #IndiaEconomy #IncomeInequality #EconomicGrowth #SocialMobility #IncomeDistribution #EconomicDevelopment #WealthGap #MiddleClassIndia
