During his power packed visit to USA with over 3 dozen engagements/meetings, the irresistible Indian prime minister, Narendra Modi held a brainstorming session with high profile American think-tank viz., Council on Foreign Relations (CFR) in New York on September 28, 2014.
Apart from discussing Indo-US relations as also India’s relations with its neighbours and other countries, Modi used the opportunity to share his philosophy [contrary to what some of his die hard critics may say, he does not carry any ideological baggage allegedly linked to his association with Rashtriya Swayamsevak Sangh (RSS), mentor & guide of BJP] and approach to development.
Thus, during his opening address at CFR, he stated “there is a ‘Neo-Middle Class’ in our country, one which has just come out of poverty and does not want to go back”. He then went on to add “we have to pay attention to this ‘Neo-Middle Class’”.
The loaded statement encapsulates Modi’s emotional bond with the millions of poor families and millions of un-employed youth. For generations, they have lived in pitiable conditions and could not ever dream or contemplate a possible change in their fortunes, forget making efforts to come out of the trap.
Indeed, he himself had gone through the pains during his childhood working as ‘chhaiya wala’ (tea selling boy) – a euphemism often used by him during his speeches. The phrase reverberated during his tantalizing address delivered at Madison Square Garden (MSG) on September 28, 2014 and drew standing ovation from 20,000 Indian-Americans (besides over 3 dozen congressmen and senators).
Modi drew spontaneous applause largely because he connected with many of them to their early (miserable) days in life and were lucky to have got opportunities in their professional career – at the right time – enabling them transform their own fortunes. Naturally, when prime minister of country they hail from touched a chord, this was bound to generate excitement and a deep sense of satisfaction.
So, when Modi coined the phrase ‘Neo-Middle Class (NMC)’ at CFR – just after his sterling performance at MSG – he was galvanizing the attention of really fortunate ones like the NRIs (non-resident Indians), OCI (overseas citizens of India), PIOs (persons of Indian origin) besides American companies and institutional investors to this huge ocean of disadvantaged group.
The NMC includes millions of persons working in ‘informal’ sector in a variety of small and medium scale professions viz., artisans, handicraft, cottage industries, security guards, auto-repairs, mobile phones and other electronic goods repairs, restaurants/road-side dhabas, drivers, maids, rickshaw pullers, auto drivers, electricians, plumbers, masons, tailors, barbers etc.
They are the ones who have just come out of abject poverty/ bare subsistence living or hand-to-mouth existence and made transition to a living that allows them to have some cloths, bare minimum shelter and essential medicines etc. Yet, they do not have income high enough to afford a good quality life, nutritious food, send their children to good schools and afford good medi-care.
Majority of them live in slums/jhuggis on the periphery/fringes of urban agglomerations, satellite towns of metropolitan cities, smaller cities & towns, semi-urban areas and have very limited access to basic infrastructure viz., potable water, electricity, roads, education, medical facilities etc.
This is the class whose hopes and aspirations were aroused by Modi during campaign for general elections promising jobs and a commitment to better quality of life by way of adequate provisioning for power, shelter, sanitation, water, roads, education, medical facilities, woman safety etc. They are the ones who voted overwhelmingly for him in the name of development and good governance transcending barriers of caste and religion.
Having got a sense of what good quality life would be like and possibilities of getting there – on the strength of promises made by Modi – they would shudder at the very thought of lapsing back in to a state from where they came out. They would like to move forward with confidence. This is where the real responsibility of present government lies. And that is why Modi said “we have to pay attention to this ‘Neo-Middle Class’”.
Quite unlike the previous governments – mostly led by Congress either singly [as under Indira Gandhi (1980-84) or Rajeev Gandhi (1984-89)] or as leader of coalition – which made lofty promises and formulated grandiose scheme only to forget or misuse for personal gains, Modi is not just selling dreams. Ever since he has taken command, he is using every moment of his, cabinet colleagues and the entire bureaucracy to work for realizing those dreams.
The government has launched dozens of schemes that have a national footprint and profound bearing on uplifting of the NMC. These include PM Jan Dhan Yojna (PMJDY) for financial inclusion with insurance cover; Bharat Swachch Abhiyan for a ‘Clean India’; ‘Make in India’ campaign; skill development initiative; rejuvenation of Ganga; railway modernization; smart cities; shelter for all, uninterrupted power supply and potable water; road building & highways; port development; technology-led second green revolution, restructured MGNREGA with emphasis on needy and asset creation etc.
In all the aforementioned schemes, Team Modi is seen in action with prime minister himself taking keen interest and doing the follow-up for ensuring proper and effective implementation.
Through his prompt actions, stable policies and transparency in decision making, the present government has created an environment whereby investors are willing to pour money. The new paradigm is aptly captured in a new twist Modi gave to term FDI (foreign direct investment) as ‘first develop India’. This has instilled confidence and foreign investors feel that their money will be safe in India and fetch good returns.
During Modi’s visit to Japan, latter committed investment of US$ 35 billion over 5 years while China signed deals worth US$ 20 billion during visit of President, Xi Jinping . During his visit to USA, companies under aegis of USIBC have promised around US$ 40 billion which is expected to go up to US$ 100 billion. In addition, already foreign institutional investors (FII) brought in over US$ 20 billion during first 6 months of 2014. And the roller coaster ride continues with rating agencies giving full marks to Modi.
With a stable government in place and decisive leader armed with a complete blueprint – already in execution mode involving all stakeholders – the Neo-Middle class need not fear slipping back in to abject poverty; it can even look forward to a prosperous future.