By Dr. CA Mayur B. Nayak, Editor
The year 2022 is behind us. It was an eventful year post-pandemic. Barring the Omicron wave in the first quarter of 2022, the effect of the pandemic has been less severe in India compared to most other countries of the world. Government spending on infrastructure and targeted aid to the poor and needy sections of society, during the two years of the pandemic, showed their impact in bouncing back of the Indian economy. Due to timely and effective measures like free rations and food subsidies to the poor, India prevented an increase in extreme poverty level.
However, according to experts, the pandemic has taken a great toll on the middle-class population of India. Experts from Mumbai University have defined the middle class as spending from US$ 2 to US$ 10 per person per day (i.e., Rs. 160 to Rs. 800 approx.). According to this criterion, almost half of India’s population of 1.3 billion is in the middle class.
Many middle-class families have plunged into poverty due to the loss of jobs, non-availability of food subsidies, and other help from the Government. This one class has been neglected by successive Governments, may be because it is not viewed as a united vote bank. The poor can survive on social welfare schemes with the Government providing free and subsidised foods, medical treatments, electricity, homes, education, gas cylinders, and other freebies. The rich do not need any such help and can thrive despite inflation or recession, whe
