Understanding the burgeoning Indian middle class through its expenditure and asset-ownership patterns

Based on NSS data from 1999–2000 to 2011–2012, this chapter analyses expenditure and asset-ownership patterns of the Indian middle class and compares them with those of the other classes. In contrast to the poor, the middle class spends a larger fraction of its income on education, health and durable goods, establishing its role in driving human capital formation and consumer demand. Moreover, there are considerable differences between the poor and the lower-middle class, indicating that income levels above $2 significantly varies consumption patterns of households. More expensive assets like computers are however primarily owned by the rich. Our findings have vital implications for the developmental role of the middle class and for those looking to target viable consumer markets.