We use the consumption-expenditure based definition of the middle class by Banerjee and Dufloe (2008) to examine the structure and composition of India’s middle class. Our analysis is based on nationwide representative National Sample Survey Organisation’s consumer expenditure survey. We find that between 2004-05 to 2011-12, the size of India’s middle class almost doubled, with the largest increase coming from the urban areas. This was largely the effect of rapid economic growth, a construction boom in urban areas, and rising real wages in agriculture. The occupational profile of the middle class also changed substantially during this period. We also analyze the experience of different states. Finally, we comment on the probable course of the growth of middle class from 2012-2020, based upon more recent National Sample Survey Organization data, whose public availability has now been restricted.

Sponsored by the Bodus Family Academic Programming Fund and the Asian Societies, Cultures, and Languages Program