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Whats the fuss abt??

The Indian middle class is not the same what it was just a decade back. They were then branded as conservative and thrifty people. Not anymore, India’s middle class is now dynamic, educated, liberal and form the pillars of this vibrant Indian economy (due to their spending nature)

Here are the 10 facts that you may not know about Indian middle class:
1. An average family of 4.3 people live typically in a 900 sf apartment; 71% own properties, but only 9% have a mortgage

2. 29% own cars, 100% of households have TVs, 99% have mobile phones and 63% have credit cards (rapidly changing)

3. Household savings are low at 13% of annual income; mainly to meet emergency needs, health care and education costs.

4. Risk aversion is high: 84% have not taken loans, only 11% have invested in equities (this is changing fast)

5. Land and properties account for 51% of wealth, with 30% in cash and deposits

6. Half of households have seen their income rise in the past 12 months, of which one third saw income rise more than 20% (this trend was observed in 2007, before recession took its toll on the U.S., now the pics all different as one might read in all the dailies...time to activate thrifty genes?!)

7. 63% of respondents expect their income to increase in the next 12 months (NOT anymore, the pink slip fear is at its epitome)

8. Slightly more than half say governance has worsened in the past 10 years; improving the economy and reducing corruption are seen as top priorities for the government.

9. Children’s future and education a key concern and priority; other major concerns are rising prices and medical costs

10. Very high aspirations for children with 43% wanting their kids to get a master’s degree and 29% a doctorate
Source: CLSA
"10 facts you should know about Indian middle class" by Arun Prabhudesai was published on September 10th and is listed in Growth, Income, India, Indian, Indians, Top list, economy.

Interpretation:

>1. Procreate less, generate more income. Don't mortgage anything you already own unless absolutely necessary...which brings us to No. 2.

>2. Loans, if possible, should be avoided as the plague...No matter how enticing it may seem, its better to eat less now than starve later.

>3. The nano has arrived, but thats not the answer to all the prayers. Buy one only with rational thought. Its not something to hoard and store, so what if its cheap, fuel isn't for free.

>4. Start being penny and pound wise. Invest safely and carefully. Save more. Money can't buy happiness, but it can surely buy a lots of other things ;)

>5. Gold is the new thing to invest in, it seems. Be smart, not impulsive. Theres a right time to part with the old and ring in the new.

>6. Vote, vote...thats all they say. Reading proficiently proves NO ONE worthy enough, so i guess in the kingdom of the blind, the one eyed jack is king ;/

>7. The Great Indian Middle Class loves their kids , but what do the kids love? No foreign education can secure any MNC job in today's world. Look closely, our system is on revamp.(Or so they make us believe). Stick closer to home, its always more convenient not to dig real deep in the pocket.

>8. Highly educated = highly paid jobs??? Is it? (Mostly not the case) But, for ol' time's sake, lets wait and watch that one out.

THERE, that's pretty simple, or so it seems. The recession HITS everyone. But one must believe its a passing phase and all those hard earned rupees will not disappear into thin air, if its hard earned that is... Easy money, easy to lose, hard to keep.

Hopefully the G.I.M.C. ties its laces, before they trip on them. Now, whats the fuss about again?

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