The Causes For Development Of Indian Middle Class

The middle class emerged in India because the British Government does not provide an adequate facility for economic growth and development. The middle class of the country wants to make a transplant system for governing the economic activity in the nation. The 19th century social and religious movement also encouraged the Indian community to make governing principles for promotion of economical captivity and ensure productivity of the nation. The caste system hampers occupational mobility in the early 18th century and has resulted in the classification of society. Economic development of the land policy between the years 1857-1947 is the major player in the creation of the middle class in the country.

What are the Causes for the Development of the Indian Middle Class?

The middle-class people came into existence due to the effects of the industrial revolution of the 18th century. Large scale mechanical manufacturing and production were possible due to the change in economic policy and technological development in the country. Change in British land policy also introduces a new classification among the early middle class of Indian society. The capitalist growth in the pre-British era makes the classification of merchants and develops the principle for the middle class in the society.

How Did the Middle-Class Concept Develop in India?

The middle-class concept was developed due to the change in the political and social system against capitalism. The capitalist society of the early 19th century also hindered the growth of the community and produced the concept of the middle class. Land economy and lack of education also create barriers in the society and develop classification in the social structure. The Law of property was closely dependent on the law of cast and religion hampers the equality in the social class. The British land economy hampers the caste distinction and creates trade barriers in society.

Explain the Economic Liberalisation Program

Economic liberalisation program refers to the government policy for promoting free trade, eliminating subsidies, deregulation, price control system, and removing the chances of privatisation. The Economic liberalisation program was first introduced in India in 1991 to motivate the macroeconomic crisis 1991. The Indian government introduced three different economic models including liberalisation, globalisation and privatisation. The primary aim of the liberalisation program is to boost economic activity by restricting the capital flow in the country. In this program, restrictions are removed on the movement of goods across the country and help to make prices of goods by reduction of tax rates.

Stabilisation of Annual GDP Growth Rate in the Liberalisation Program

Stabilisation of the annual growth rate has helped in the maintenance of business environments and competitiveness. Stabilisation of the annual growth rate introduces new policies for macroeconomics and reduces the impact of trade barriers on the economy. This economic liberalisation opens up a new strategy for foreign investment and the Indian private sector was introduced to change the global business environment. Liberalisation has helped in the quick reduction of the trade deficit and improved the GDP growth rate for the future. Annual GDP growth rate determines the success of the economy.

Expansion of Middle Class in India

The middle-class concept was developed in the celery 19th century and it is continuing in recent years. The rising middle-class concept introduces four types in the middle-class stature of the country. The commercial class or middle man was found in the early era of the 19th century. Moneylenders and brokers are the middle-class community in the society that invested their money in the land. The percentage of industrial middle-class people is very few as the growth of the industry was minimal in the early 19th century. The last class is the educated middle-class people who have technical and administrative knowledge.

Effect of Middle-Class Development

The middle class is the main source of economic development and the new land policy of the British government in the early 19th century improved the social stature of middle-class people. The educated middle-class people promoted western ideas and education and started the reformist movement in the country like Brahmo Samaj and Arya Samaj.Lower middle class generally comprised the dissatisfied educated people with low income than upper-middle class.

Conclusion

The above study indicates that development of the middle-class group in the country is closely linked with economic development and foreign investment. Liberalisation policy in 1991 removes barriers in trade and increases the trade benefits for the capitalist of the country. Social division and social structure classified the middle class in the country. In 1790 the land policy in the country was designed to introduce the concept of a middle class in Indian society. The study illustrates that the formation of economic policy in 1991 helps in the movement of goods across the country.