Finance Minister Nirmala Sitharaman says India’s growing middle class is the country’s main engine of economic growth and consumer spending. Speaking at a panel on promoting the rise of a new middle class at the Rencontres Economiques d’Aix-en-Provence, she said about 31% of India’s population is currently in the middle class. She added that, since India opened its economy, the middle class has been expanding at an annual rate of 6.3%. Sitharaman also said a large share of India’s spending—reported as nearly all, or about 93%—is expected to come from the middle class and slightly affluent consumers.
She further said this middle class is not limited to major metropolitan cities. Instead, India’s development model has helped the middle class grow in tier-two and tier-three cities, which she described as the basis for a broader shift in economic activity. In this context, Sitharaman said nearly 500 cities are poised to emerge as the next centres of economic activity, supported by government efforts, including skill-development measures linked to emerging technologies.
