'Middle-class' demands conflict with Modi policy

Subject

Middle-class economic and political aspirations.

Significance

Prime Minister Narendra Modi's government came to power in 2014 with strong support from middle-class voters, drawn by his development and good governance rhetoric. This promised to move stalled middle-class aspirations forward, after the economy slowed from 2011. Whether Modi can deliver on his promises of a revived economy and middle-class employment opportunities will determine his government's political fortunes in the medium term. A secure middle class able to spend and invest is also key to reviving the economy.

Impacts

• Manufacturing has the greatest job-creation potential, but the government has yet to advance a concrete strategy to achieve this.
• Growth of middle-class jobs in service industries is likely to become even more regionally skewed.
• Middle-class voters frustrated with national parties will switch allegiances, scuppering BJP hopes for one-party dominance.