What is Upper Middle Class in India?

This concept might seem familiar but often a bit hazy when we try to pin it down – the upper middle class in India. You know, those folks who seem to be living a comfortable life, but not necessarily rolling in money like the billionaires you hear about. So, what exactly defines the upper middle class in India? Let’s break it down.

Income Range: 25 Lacs to 90 Lacs

Alright, let’s start with the numbers. To be considered part of the upper middle class in India, your annual income typically falls within the range of 25 lakhs to 90 lakhs. That’s a broad spectrum, but it covers a significant chunk of the population.

Think about it this way – if you’re earning around 30 lakhs per year, you’re comfortably nestled in this bracket. You’re not exactly stashing away crores, but you’re definitely not worrying about making ends meet either.

Savings and Expenditures

Now, let’s talk about what happens with that income. After taking care of the basics like food, shelter, clothes, and a bit of entertainment, the upper middle class in India manages to save about 50 to 60 percent of their earnings. That’s no small feat.

For instance, if you earn 60 lakhs a year, you’re likely setting aside 30-35 lakhs for your future needs and aspirations. That’s the power of smart financial planning.

Taxation Before Expenditure

Here’s an interesting tidbit – when you’re part of the upper middle class, your income gets taxed before you even think about your expenditures. So, before you can splurge on that fancy dinner or the latest gadgets, the taxman takes his share.

For instance, if you earn 40 lakhs a year, you’ll first pay your taxes, and then you’ll budget your expenses with the remaining amount. It’s a bit like having the government as a financial advisor, whether we like it or not.

Asset Ownership: Land and Homes

Another defining characteristic of the upper middle class in India is asset ownership. This group typically owns multiple assets, with a strong preference for land and residential homes.

Picture this – Mr. Sharma, your neighbor, might own his primary residence in the city, a vacation home in the hills, and a piece of land in a developing area. These assets provide security and serve as potential investments for the future.

International Vacations

Have you ever wondered how often someone goes on an international vacation? Well, if you’re part of the upper middle class, you can likely pack your bags for at least one international trip every year.

Let’s say you’re planning a family vacation to Thailand, exploring the streets of Bangkok and relaxing on the beaches of Phuket. That’s a luxury many aspire to, and the upper middle class in India often enjoys.

Premium Shopping

Ever walked into a high-end store and marveled at the price tags? Well, the upper middle class doesn’t just marvel; they shop there. Multiple times a year, in fact.

Think about it like this – they might buy a designer outfit for a special occasion or treat themselves to the latest smartphone without batting an eye. It’s a level of shopping freedom that distinguishes them from other income groups.

Investing in Education

One of the key priorities for the upper middle class is ensuring that their children receive an education that opens doors to lucrative careers. They invest heavily in education, starting from good schools and often extending to fee-paying, boarding, or selective institutions.

It’s like Mr. and Mrs. Kapoor, your neighbors, sending their kids to a renowned private school to secure a bright future. They want the best for their children, just like you and I do.

Exclusive Clubs and Event Involvement

Have you heard about those exclusive clubs where people mingle over fine wine and discuss the latest trends? Well, many upper-middle-class individuals belong to such clubs. They are actively involved in organizing events and managing projects within these exclusive circles.

Imagine being part of a club where influential people meet regularly, discuss business ideas, and support each other’s initiatives. It’s a networking strategy that often pays off in the long run.

Dressing the Part

Dressing appropriately is another hallmark of the upper middle class, albeit with a twist. While they can certainly pull off formal attire when needed, they don’t always go the extra mile.

Take, for example, Mr. and Mrs. Gupta, your friendly neighbors. They might dress casually in everyday life but ensure they look impeccable at social gatherings and events. It’s about striking a balance between comfort and style.

Cars and Preferences

When it comes to automobiles, the upper middle class tends to be practical rather than flashy. You won’t find them cleaning their cars every Sunday like a ritual. In fact, they might own old and unremarkable vehicles, like the classic Polo.

Consider this – they prefer cars in colors like navy, racing green, grey, and black. And while they might be suspicious of the extravagance of a Mercedes, they do appreciate the sturdiness of a Land Rover or the sophistication of an Audi.

Healthy Eating Habits

Remember those fast-food joints that have popped up on every corner? Well, the upper middle class usually steers clear of them. They prioritize health and nutrition, often spending a significant chunk of their income on groceries.

Picture this – they shop from various sources, looking for organic and healthy options. When possible, they opt for local produce, supporting the community and their well-being.

So, there you have it, the upper middle class in India, not in fancy jargon but in simple terms we can all relate to. It’s a group of folks who work hard, save diligently, and enjoy a comfortable lifestyle without going overboard.

But here’s a question to ponder – does being part of the upper middle-class guarantee happiness and contentment? What do you think? Let’s discuss this in the comments section below!