THE 4 PILLARS HOLDING UP INDIA’S EXPANDING MIDDLE

General Studies Paper 3

• Context: A sharp decline in poverty levels, now down to about 16% of the population, is witnessed in India due to the emergence of the middle class at the national level. According to an estimate, about one-third of the population is estimated to have entered the middle-class.
• This is because of government’s systematic approach to increase middle-class wellbeing in the past. According to the author, these initiatives can be articulated through the 4S framework: Sampannata, Surakshit Bhavishya, Shreshtha Jeevan and Saralta.

What are the 4S framework for middle class prosperity?

Sampannata: Enrichment through inflation control and loans

• Between 2014 and 2022, annual inflation was 4. 6%. Despite multiple global crises, the CPI was at 5. 7% in December 2022, which was much lower than many G20 countries.
• This ensured
• a)greater liquidity for the middle-class,
• b) lower EMIs resulted in decline in loan rates. For example, student loan rates were priced about 8% in 2022 from around 14% in 2014,
• c) middle-class families found lower EMIs easier to purchase more houses, cars and also take more loans for the higher education,
• d) one-nation one-tax initiative of GST has led to gross savings of an estimated Rs 18 lakh-crore, which works out to an annual household saving of Rs 12,000,
• e) 120 million of 380 million beneficiaries of the PM Mudra Yojana were middle-class individuals.

Surakshit Bhavishya: Securing a healthy future

• This includes significant government efforts to provide affordable healthcare and quality education. Steps in this direction include
• a)353 new universities in the last nine years,
• b) Opening up of 15 new AIIMS and 261 new medical colleges,
• c) 41 Indian universities featured in global rankings in 2023 compared to just nine in 2014,
• d) 50-90% cheaper generic medicines available at 9,000 Jan Aushadhi Kendras,
• e) 87 crore free screenings is done at 1. 5 lakh Ayushman Bharat Centres.

Shreshta Jeevan: A better life

• -By 2022, India built 1. 65 lakh kms of national highways and had the second largest road network in the world, after the US, due to a tenfold increase in capital expenditure on roads and bridges,
• -India now has metro connectivity in 20 cities. India is now a year away from having the third largest metro network globally.
• -India has the highest per capita mobile data consumption rate and among the lowest cost of data per GB in the world.
• Nearly 80% of India’s 120 crore mobile phone users and 80 crore internet users are expected to receive 5G connectivity within a year. If done it will be the world’s fastest 5G roll-out.
• -Apart from that, visible improvements is seen in housing, transportation, tap water connections, and waste management. On an average, power is now available for 22 hours against 12. 5 hours in 2015.

Saralta: Hassle-free existence

• -India’s cashless digital payment ecosystem is hailed as among the best in the world. UPI accounted for 65% of the total digital transactions in 2021-22.
• -DigiLocker facility for paperless certificate authentication has been embraced by the middle-class.
• Overall, India’s rising global profile in a multitude of areas has inculcated a new sense of pride among Indian middleclass. Indian government remains committed to boosting prosperity for the middle-class through the 4S framework, providing an alternative development model to the world.