Born in socialist times, a generation of Indians lived the ideas and values of middle class for a lifetime. Middle class was an aspirational place to be for this generation, at a time when a large majority of people were still struggling to get a permanent roof over their heads and jobs that could assure them of some level of security. Many Indians took pride in belonging to this group and class. It provided stability, a basic means of life and living, and guaranteed return on hard work. Education, a doctor, lawyer or engineer’s degree or a government job, were passports to this class and respect among the tribe. Wealth and consumption were scorned, looked at with suspicion. It was often assumed that wealth had been gained through corrupt means or at the cost of the masses.
The middle class represented not just a socioeconomic group but also a mindset. A much celebrated mindset, where the present was lived in the memories of the past and with efforts to conserve for the future. Celebrating constraints and restraining aspirations marked the middle class. Consumption, then, was largely centred on festivities and occasions such as childbirth and marriage. Indian society celebrated this mindset; predictability and stability were rewarded. So the middle class was an aspirational place to be both in mindset and as an economic force.
Gradually, however, India changed. Liberalization opened up the country and brought in a degree of ease and comfort in accessing goods and services. Economic policies and the opening up of the private sector provided better prospects. Mobile phones revolutionized the country and their penetration can be understood perhaps as the beginning of un-middle-classing in India. The nation got connected in an uninhibited way; the individual began to develop an identity outside of the family and community. The idea of private space emerged. A democratic force, a mobile phone was aspirational, irrespective of class.
Modern retail created new consumption festivals, unveiled many new categories and created aspirations. The new meccas created by modern retailers helped millennial Indians converge, spend weekends, celebrate their achievements and discover the small joys of life. Malls became the new public spaces and community centres. Here, India discovered modernity, new categories and newer reasons to consume. Smaller towns and cities emerged and demographically India became one of the youngest nations in the world. This young India possessed confidence and a fresh perspective to conquer the world. The romance of constraints did not appeal to this generation.
This un-middle-classing mindset is at the forefront today. Our aspirations have grown. Time is a valuable currency. Convenience and access are essential pillars of these times. Owning white goods, cars and homes on equated monthly instalments, the mushrooming of beauty parlours and gyms in big and large towns, the increasing dependence on household help in urban centres, the emergence of new categories—from diapers for infants to jeans for women, from packaged rice to men’s grooming products—overall attitudes towards saving and spending have much to suggest. The rate of savings in India today is around 31%.
The middle class has a new view of itself. We no longer struggle with life stages and roles, we embrace them and shape them. Everyday lives are not engulfed in the chores of living, we view life as a spectacle. With Indians taking selfies at every chance possible, pouting and posing at the camera, life is lived in the now. Adoption of new festivals and amplification of existing ones makes consumption a part of everyday life.
Shifts are visible. Inter-caste marriages are more acceptable, wearing high heels is an aspiration for women across socioeconomic classes. We no longer scorn the wealthy, the Hindi speakers or business owners. Fluency in English, education or wealth is not seen as the only marker of success. Enough role models have proven that despite all the odds, success is possible. Parenting too is not a one-way stream; often, reverse parenting is at play. Here, the young induct parents into the fold of technology and ensure that they remain relevant.
For modern retail to thrive, a healthy middle-class force is a prerequisite. Today guilt has been replaced by aspirations and society is leaping towards a new future.
With the onset of the un-middle-classing mindset and behaviour, the best years for a consumption-led economy in India are yet to come.
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- In the Large States category (overall), Chhattisgarh ranks 1st, followed by Odisha and Telangana, whereas, towards the bottom are Maharashtra at 16th, Assam at 17th and Gujarat at 18th. Gujarat is one State that has seen startling performance ranking 5th in the PAI 2021 Index outperforming traditionally good performing States like Andhra Pradesh and Karnataka, but ranks last in terms of Delta
- In the Small States category (overall), Nagaland tops, followed by Mizoram and Tripura. Towards the tail end of the overall Delta ranking is Uttarakhand (9th), Arunachal Pradesh (10th) and Meghalaya (11th). Nagaland despite being a poor performer in the PAI 2021 Index has come out to be the top performer in Delta, similarly, Mizoram’s performance in Delta is also reflected in it’s ranking in the PAI 2021 Index
- In terms of Equity, in the Large States category, Chhattisgarh has the best Delta rate on Equity indicators, this is also reflected in the performance of Chhattisgarh in the Equity Pillar where it ranks 4th. Following Chhattisgarh is Odisha ranking 2nd in Delta-Equity ranking, but ranks 17th in the Equity Pillar of PAI 2021. Telangana ranks 3rd in Delta-Equity ranking even though it is not a top performer in this Pillar in the overall PAI 2021 Index. Jharkhand (16th), Uttar Pradesh (17th) and Assam (18th) rank at the bottom with Uttar Pradesh’s performance in line with the PAI 2021 Index
- Odisha and Nagaland have shown the best year-on-year improvement under 12 Key Development indicators.
- In the 60:40 division States, the top three performers are Kerala, Goa and Tamil Nadu and, the bottom three performers are Uttar Pradesh, Jharkhand and Bihar.
- In the 90:10 division States, the top three performers were Himachal Pradesh, Sikkim and Mizoram; and, the bottom three performers are Manipur, Assam and Meghalaya.
- Among the 60:40 division States, Orissa, Chhattisgarh and Madhya Pradesh are the top three performers and Tamil Nadu, Telangana and Delhi appear as the bottom three performers.
- Among the 90:10 division States, the top three performers are Manipur, Arunachal Pradesh and Nagaland; and, the bottom three performers are Jammu and Kashmir, Uttarakhand and Himachal Pradesh
- Among the 60:40 division States, Goa, West Bengal and Delhi appear as the top three performers and Andhra Pradesh, Telangana and Bihar appear as the bottom three performers.
- Among the 90:10 division States, Mizoram, Himachal Pradesh and Tripura were the top three performers and Jammu & Kashmir, Nagaland and Arunachal Pradesh were the bottom three performers
- West Bengal, Bihar and Tamil Nadu were the top three States amongst the 60:40 division States; while Haryana, Punjab and Rajasthan appeared as the bottom three performers
- In the case of 90:10 division States, Mizoram, Assam and Tripura were the top three performers and Nagaland, Jammu & Kashmir and Uttarakhand featured as the bottom three
- Among the 60:40 division States, the top three performers are Kerala, Andhra Pradesh and Orissa and the bottom three performers are Madhya Pradesh, Jharkhand and Goa
- In the 90:10 division States, the top three performers are Mizoram, Sikkim and Nagaland and the bottom three performers are Manipur and Assam
In a diverse country like India, where each State is socially, culturally, economically, and politically distinct, measuring Governance becomes increasingly tricky. The Public Affairs Index (PAI 2021) is a scientifically rigorous, data-based framework that measures the quality of governance at the Sub-national level and ranks the States and Union Territories (UTs) of India on a Composite Index (CI).
States are classified into two categories – Large and Small – using population as the criteria.
In PAI 2021, PAC defined three significant pillars that embody Governance – Growth, Equity, and Sustainability. Each of the three Pillars is circumscribed by five governance praxis Themes.
The themes include – Voice and Accountability, Government Effectiveness, Rule of Law, Regulatory Quality and Control of Corruption.
At the bottom of the pyramid, 43 component indicators are mapped to 14 Sustainable Development Goals (SDGs) that are relevant to the States and UTs.
This forms the foundation of the conceptual framework of PAI 2021. The choice of the 43 indicators that go into the calculation of the CI were dictated by the objective of uncovering the complexity and multidimensional character of development governance
The Equity Principle
The Equity Pillar of the PAI 2021 Index analyses the inclusiveness impact at the Sub-national level in the country; inclusiveness in terms of the welfare of a society that depends primarily on establishing that all people feel that they have a say in the governance and are not excluded from the mainstream policy framework.
This requires all individuals and communities, but particularly the most vulnerable, to have an opportunity to improve or maintain their wellbeing. This chapter of PAI 2021 reflects the performance of States and UTs during the pandemic and questions the governance infrastructure in the country, analysing the effectiveness of schemes and the general livelihood of the people in terms of Equity.
Growth and its Discontents
Growth in its multidimensional form encompasses the essence of access to and the availability and optimal utilisation of resources. By resources, PAI 2021 refer to human resources, infrastructure and the budgetary allocations. Capacity building of an economy cannot take place if all the key players of growth do not drive development. The multiplier effects of better health care, improved educational outcomes, increased capital accumulation and lower unemployment levels contribute magnificently in the growth and development of the States.
The Pursuit Of Sustainability
The Sustainability Pillar analyses the access to and usage of resources that has an impact on environment, economy and humankind. The Pillar subsumes two themes and uses seven indicators to measure the effectiveness of government efforts with regards to Sustainability.
The Curious Case Of The Delta
The Delta Analysis presents the results on the State performance on year-on-year improvement. The rankings are measured as the Delta value over the last five to 10 years of data available for 12 Key Development Indicators (KDI). In PAI 2021, 12 indicators across the three Pillars of Equity (five indicators), Growth (five indicators) and Sustainability (two indicators). These KDIs are the outcome indicators crucial to assess Human Development. The Performance in the Delta Analysis is then compared to the Overall PAI 2021 Index.
Key Findings:-
In the Scheme of Things
The Scheme Analysis adds an additional dimension to ranking of the States on their governance. It attempts to complement the Governance Model by trying to understand the developmental activities undertaken by State Governments in the form of schemes. It also tries to understand whether better performance of States in schemes reflect in better governance.
The Centrally Sponsored schemes that were analysed are National Health Mission (NHM), Umbrella Integrated Child Development Services scheme (ICDS), Mahatma Gandh National Rural Employment Guarantee Scheme (MGNREGS), Samagra Shiksha Abhiyan (SmSA) and MidDay Meal Scheme (MDMS).
National Health Mission (NHM)
INTEGRATED CHILD DEVELOPMENT SERVICES (ICDS)
MID- DAY MEAL SCHEME (MDMS)
SAMAGRA SHIKSHA ABHIYAN (SMSA)
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME (MGNREGS)