Middle-Class Question


Delhi protests are part of a larger dissatisfaction of income tax-paying groups about public services & spaces

That Jantar Mantar protests ended with both GOI and CJP avoiding maximalist stands was a relief. But GOI will do itself and the country good to recognise that protests have put the focus back on middle-class anxieties. Things seem to have become so uncomfortable that this normally passive part of society is getting restive. Yes, many Jantar Mantar protesters didn’t look particularly well-off, and many others appeared almost rich. But that’s just the way India defines middle class. 

Pundits debate the size of this class. But govt should know it’s big enough to practically power the Indian economy. Its growing appetite for goods and services props up private consumption, which makes up roughly two-thirds of GDP. It also fills the treasury with taxes, both direct and indirect. In 2025-26, govt collected ₹23.4L cr as direct tax, of which roughly ₹12L cr was income tax. How many Indians paid income tax? Less than 3%. Coming to indirect taxes, middle class does the heavy lifting again. By some estimates, a household spending ₹8L a year on goods and services pays over ₹1L as indirect tax. Then there are invisible taxes. For example, when crude became cheap in 2023, pump prices in India didn’t change – handing a windfall to Centre and states.  

But middle class isn’t restive because of these old taxes. Rather, it’s disillusioned with the returns it gets. It even pays a 4% health and education cess on income tax, but can’t use shabby govt hospitals and schools. Public transport, water supply, security, electricity – everything is unreliable. So, after paying taxes, middle class makes private arrangements for them – water and air purifiers, cars and bikes, generators, private security, etc. 

What it can’t buy, unlike the rich, is a good future for its children abroad. So, it needs good colleges and universities, and job opportunities within India. And the assurance that these are offered strictly on merit. But if this ladder of social mobility is itself wobbly, middle class cannot remain passive anymore. They’re angry because they’re afraid they’ll slip down the social ladder. While the establishment can dismiss middle class as an electoral minority, this would be short-sighted. Knowing that middle class imparts economic stability to the country, and drives growth, its concerns must get the attention they deserve.

Why the Middle-Class is Leaving India: 'Better Taxes, Infrastructure' | Sanjaya Baru Interview

https://timesofindia.indiatimes.com/blogs/toi-edit-page/private-funding-of-public-failures-states-recession-from-our-lives-is-a-much-bigger-problem-than-its-invasion/

https://www.downtoearth.org.in/economy/indias-middle-class-bears-a-large-share-of-revenue-cost-while-receiving-a-small-share-of-expenditure-benefit



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Views expressed above are the author’s own.

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