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Submitted by Sanjeev Ahluwalia on
The middle class should be relatively easy to identify is we agree that it has the following minimum characteristics: (1) Income levels which permit a degree of capital accumulation sufficient for acquisition of consumer durables and a house (2) Disproportionate use of disposable income for education of children (3) Predominanatly employees or professionals (accountants, lawyers) rather than entrepreneurs (4) Urban dwellers. These characteristics account for most of the economic and politcal incentives which drive this group (eg. tax breaks on investment in a self occupied house, lower taxes on salaried income, tax breaks or state subsidies for educational institutions, state subsidy for mass housing etc, state subsidy on urban metros, meritocracy in state recruitment etc.)