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https://theprint.in/opinion/standard-deviation/india-must-revise-its-definition-of-middle-class-those-earning-rs-1-cr-arent-rich-anymore/2434437/

This is true, not being trollish (as this website likes to call it). In Mumbai this allows you to live very comfortably as a single person but if you’re supporting a partner and a kid it’s not that much money. 2 cr pre tax would also not be rich, it would be upper middle class.

This is exactly the mentality that will forever prevent progress, unless we get well shot of it. Call a spade a spade! While the base of comparison is not exactly the same, I think this is an argument still worth thinking about. There was a bit of a row in Britain a while back when the then Chancellor of the Exchequer (finance minister in other countries) said that earning 100,000 Pounds a year was not that substantial a salary. While obviously economic circumstances are different in India, I think the principle of his mentality translates well. It's just that the numbers (i.e., what number is equivalent in India (what is not so substantial a salary) to 100,000 Pounds) will be different, because obviously anyone saying that the equivalent of 100,000 Pounds in INR is not substantial is kidding or trolling. Jeremy Hunt had, however, a point which is equally applicable to India (very basic economics, no need to have studied it at all to understand its correctness). The value of money now compared to previous times has gone down, meaning that the higher the value of what is in our pockets, the better. In my view, the situation is such that the number quoted by that article just might be correct for cities such as Mumbai. If you think not, please produce rational arguments for why not. The fact that there are many people who, because of unfair circumstances, aren't able to earn that much money (but have the potential (cleverness, nature of work etc)) is another issue altogether, and shouldn't be confused with the question of how much you need to earn in order to live a comfortable life.

Purchasing power remains the same for poor people and rich people alike in the same country. Bread costs the same and cars cost the same to both poor and rich. except if you cannot afford bread you starve and if you cannot afford cars you uber. If the rupee is devalued, it is devalued for poor people also. I'm not making any argument about unfairness in opportunity or whatever. I'm making a simple point about how poor the country is. The median income is 30K a month. Only 3% of Indians make a lakh a month or more. To argue that those in the top 3% are middle class is nonsensical. Middle class needs to have a coherent meaning. Just because you cannot afford a lux Insta-worthy life in Bombay doesn't mean people don't live in chains and slums and 1 bhk in faraway parts of the city with their entire family. Get real. You're not calling a spade a spade- you're being quite silly. Class is not about your feelings. Class is about wealth and who has it and who doesnt. Most of India is poor, much poorer than any corporate lawyer has been since he started earning. That you cannot afford armani suits and rolexes doesnt make you middle class. Definitionally, most people who frequent this website are much much nearer to top earners than they are to the working class. How deluded are you guys?

So I agree with you but lately I’ve also started seeing the other perspective — the really poor of India are so far outside our lived experience (circumstantially and also by our own wilful ignoring of them). So much so that in our (say a middle class person’s) construct of what ‘society’ is in terms of who we deal with interact with and compare ourselves to, an earning of even 40-80 lakhs doesn’t make you feel rich in any way.

1 crore a year is definitely rich though unless its some one time income. That’s just stupid to think otherwise lol.

Class isnt defined by how you feel. Its not an identity for you to claim. Its a condition caused by the presence or absence of wealth. Someone who earns more than the median income in India, around 33 thousand ruppees is definitionally middle class, those who earn less are the under class. Anyone who earns in 6 digits per month has to definitially be upper class- only 3% of India makes that much. Upperclass doesnt mean extremely wealthy. The presence of extreme wealth and inequality in society does not mean you become middle class. Your feelings are your problems

Honestly not a great article. Argues that consumption will increase if income tax is reduced but says he did not calculate revenue implications and simply states that increased GST, due to increased consumption, will compensate. FIrstly, GST rates (in percentage) are nowhere that of income tax. Secondly, there are many more leakages in GST collection. Not to mention people will disproportionately increase saving and investment as percentage saving is down.

While I agree tax rates should be reduced till certain bracket, reducing tax rate to 20% till 1 crore is just ridiculous. 1 crore is about USD 116,000 that’s more than average salary in US and will put you just under top 20 percentile in USA. Adjust for PPP that’s more than USD 417000 easily putting you in top 2% of US, this is by no means middle class.

This shrill repetition is unhelpful and the ad hominem is disappointing (assuming about 'kids blinded by privilege' etc). None of any of this helps to take the discussion in a more constructive direction. We agree that many people should be earning much better than they currently do. That doesn't mean we fail to stare facts in the face. Mods, your rules are supposed to permit for the retraction of unhelpful comments like this, which don't remotely promote constructive, sustained reflection. Please act on that now. This isn't a question of woke v. not woke, it's a question of rational discussion v. senseless shouting.

As a person born and brought up in Mumbai, I can vouch for this. 1cr per year really doesn't amount to much, even if you don't have over the top expenses, and have your own house in an okay-ish place. By 'okay-ish' I mean a place where your pincode is "Mumbai- 400_ _ _". This city is EXPENSIVE.

By opportunities and sheer options available. Having a house enough in Mumbai where you call yourself Mumbai's middle class - you are rich in Indian context. Imagine - richest of some district in MP is not the same as the richest of India. Why are people so stupid. Middle class Indian cannot survive Mumbai. If you are surviving it as a middle class in Mumbai - you aren't India's middle class. OMG people really are that away from real India.

Downvoting pattern shows the delulu level of LI’s far-left student populace. Kids, once you start earning you will realise how much little money 1 cr is today. And please don’t get brainwashed by Thomas Pickety. Low taxation is the best way to boost the economy and remove poverty. Socialist high taxation kills economic growth and leads to more poverty.