PM Narendra Modi says Budget is for empowerment of neo-middle class—Who are they?

Prime Minister Narendra Modi on Tuesday lauded Budget 2024, presented by Union Finance Minister Nirmala Sitharaman, calling it a budget for the empowerment of the neo-middle class.

Modi said that the Budget ensures inclusive growth, benefits every segment of society and paves the way for a developed India.

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"In the last 10 years, 25 crore people have come out of poverty. This budget is for the empowerment of the new middle class. The youth will get unlimited opportunities from this budget. Education and skills will get a new scale from this budget. This budget will give power to the new middle class. This budget will help women, small businessmen, MSMEs," said PM Modi.

Modi added that his Budget will provide a new scale for education and skills. It will give new strength to the middle class. “It has come with strong schemes aimed at strengthening tribals, Dalits and backwards. This Budget will help assure financial partnership.”

The Prime Minister has often said India's growing neo-middle class is a powerhouse of aspirations.

What is Neo Middle Class?

In his manifesto ahead of the Gujarat elections in 2012, when Narendra Modi was chief minister, he listed special measures for the lower middle class, calling them the ‘neo-middle class’.

The 'neo-middle class' are the beneficiaries of economic growth who are emerging or evolving into a middle-class status.

According to a study, the neo-middle class are aspirational and want to move up the economic ladder.

Neo-middle-class people are those between low-income and mid-income levels who are willing to pay a premium for a product or a service but are not sure if it is worth the premium.

The neo-middle class is also considered a powerhouse of global economic activities and plays a significant role in driving consumption patterns and economic growth.