India’s new ‘Economic Blueprint’: Middle class will become growth engine, economic activities will run in 500 cities

The biggest ‘driving force’ behind India’s growing economy is now going to be the country’s middle class. Addressing the prestigious ‘Rencontres Economiques de Aix-en-Provence’ forum in France, Union Finance Minister Nirmala Sitharaman has shared a big vision. He has announced that in the coming time, about 500 cities of India will become the centers of new economic activities of the country. According to the Finance Minister, 31 percent of India’s population is the middle class, which is the pivot of the country’s economic future. The wheel of development will move out of the metros. The Finance Minister made it clear that the scope of India’s economic growth will no longer be limited to metro cities only. Currently, 93 percent of total consumer spending in India is coming from middle class and affluent consumers. Interestingly, this consumer segment is no longer concentrated only in big metros like Delhi, Mumbai or Bengaluru, but is rapidly expanding into tier-2 and tier-3 cities. He said the distribution of wealth is naturally moving towards smaller cities, which will establish these cities as new hubs of investment and trade. Middle class growing at 6.3 percent Sitharaman also highlighted figures that show the strength of India’s economy. He pointed out that ever since India opened its economy to the global market, the annual growth rate of the middle class has been 6.3 percent. This sustained growth rate proves that India has a huge and capable consumer base. The government’s strategy now is to develop those 500 cities from where the future economic revolution can be accelerated. This change will not only reduce regional imbalances but will also create new employment opportunities.