Neo-middle class in India

Cauliflower

While explaining the forces transforming India, the document on Cabinet Resolution to set up NITI Aayog says,

India’s middle class is unique in terms of its size and purchasing power. This formidable group is increasing with the entry of the neo-middle class. It has been an important driver of growth and has enormous potential on account of its high education levels, mobility and willingness to push for change in the country. Our continuing challenge is to ensure that this economically vibrant group remains engaged and its potential is fully realised.

Source; http://pib.nic.in/newsite/pmreleases.aspx?mincode=61
What is this neo-middle class that is being referred here?

Vibin

Recent beneficiaries of economic growth who are moving into an urban life and rising up the income ladder , especially migrant laborers ..

Cauliflower

Yes, Saw the definition in newspapers. Is it a creation of the current PM during his election campaigns or some economist or sociologist in India used it even before him?

adi17

@Devika
Technically neo middle class are those who are above BPL but below the middle class. So we can say that they are actually first generation of middle class which emerged after the liberalisation of India. They are first visible result of our financial inclusion program...
As their size is huge in India they have become the most recent targets of our political leaders to play their vote bank politics...

Modi ji used this term very much in 2012 elections... Even Rahul baba has used it often but failed to placate them..
As per NCAER data in 2010, they can be grouped in income range of Rs.90K to 2lakh per annum.. So these people can now afford 2 wheelers and open bank account/ get news LPG susbsidy, etc....

Whatever data i have collected i think it was put in common use by our PM itself in 2012 elections.....

Phoenix_Saga

Does not neo middle class simply mean the new middle class ? That is a part of the populace which has recently crossed the threshold of sustenance living to a relatively more purchase and saving orientation (with more disposable income created by growing economic resource base)... In fact its a synonym for lower middle class

aamengineer

^its same, new middle class was termed before by academics, modi govt. changed the term to neo (may it sound better ). neo middle class has to pay taxes but unlike middle class doesn't depend on the govt. for employment, pension, livelihood etc. so in a way disconnected from the state.
In anna hazare movement it had a prominent role. The middle class won't protest the state as compared to neo... since its mostly depended on it. the neo middle class has the potential to go for protests and movements against the govt. So the govt. has to take care of it .

adi17

^its same, new middle class was termed before by academics, modi govt. changed the term to neo (may it sound better ). neo middle class has to pay taxes but unlike middle class doesn't depend on the govt. for employment, pension, livelihood etc. so in a way disconnected from the state.
In anna hazare movement it had a prominent role. The middle class won't protest the state as compared to neo... since its mostly depended on it. the neo middle class has the potential to go for protests and movements against the govt. So the govt. has to take care of it .

Neo middle class is very much dependent on government for jobs, livelihood.... because if not for the financial inclusion drive started by government which also includes good governance this neo middle class would not have emerged. So this neo middle class vehemently opposes corruption/nepotism in government which directly effects their employment opportunities and livelihood..

This neo middle class was hitherto not much paid attention by political actors. The middle class is already taken care of them and there is no scope to increase their political base in the middle class.
To increase their political base the political parties are left with no option to tap this neo-middle class which has substantial presence in India...So they are trying to woo this neo middle class...not only because this class will rise in protest against the government...

aamengineer

^ middle class are well established persons having middle-income level jobs like enggrs, doctors,teachers etc... neo-middle class is the emerging class which came out of poverty recently but not established themselves......for eg. street vendor, auto-rickshaw drivers, small traders,
i will post the literature, its lost somwhere

aamengineer

@thor you are welcome here to clear the doubts. seeing you online.

aamengineer

here it is explained....
http://theinclusive.org/the-indian-middle-class-the-state-and-development-an-enquiry-into-the-broad-claims-of-shifts-in-neo-liberal-india

Cauliflower

here it is explained....
http://theinclusive.org/the-indian-middle-class-the-state-and-development-an-enquiry-into-the-broad-claims-of-shifts-in-neo-liberal-india

Thanks.. very helpful!