The melody of the middle

The middle income group has always been an object of fascination for many. While the economists were busy documenting with their
quantitative tools how they have contributed in a country's economic progress, the greedy corporates left no tricks in their sleeves to rob their disposable income, and the policy-makers flirted with them to save their throne and squeezed them to death in the name of holy taxation - only to provide benefits to the rich.

Today's discussion will try to provide the readers an inside view of the India's MIG - and hopefully interesting. But the economists are pretty much divided when it comes to form a real tangible definition. I found them scaringly theoretical and I will be using my very own observation and analysis throughout this article.

The middle income group in India is such a set where every element spends at least one million rupees in his or her lifetime. Here the keywords are at least and spend. Why spend and not earn? Because you need not earn a buck to spend one. You could always inherit a half, earn another half, and spend one. The phrase at least suggests that a few elements of the set spend two or more millions individually in his or her lifetime for owning a home ( excluding other spending category ). And what are the other primary category spend where all the elements of the set contribute? Car, kid's education and marriage, life and health insurance - and also investments in financial instruments.

Now let us divide them in two sub-categories and learn a few intriguing characteristics.

The not-so-young MIG ( age group : 41 - 60 )

1. Travels in air-conditioned trains, visits banks personally for cash withdrawals or cheque-cash deposits, and uses cash for all kinds of transactions instead of plastic.

2. Not comfortable with gadgets ( mobile, microwave oven, washing machine etc ) and computer-internet ( including but not limited to online shopping ).

3. Buys grocery ( veggies and fruits, fish-meat-chicken-egg, any other consumable food material etc ) from open-air markets and neighborhood mom-n-pop stores.

4. Shops ( apparel, electronics, any other consumer goods ) from brick-n-mortar stores.

5. Had arranged marriage.

The young MIG ( age group : 21 - 40 )

1. Travels by air and uses atm-s or swipes the card.

2. Comfortable with gadgets and computer-internet.

3. Buys grocery and everything else online and also from air-conditioned supermarkets and hypermarts.

4. Early adaptor of technology and owns at least one pair of international branded jeans ( lee / levis / fcuk ).

5. had love marriage, self-arranged marriage ( mutual selection based on compatibility followed by courtship ), or arranged-love marriage ( the boy and girl voluntarily outsource the search process to their parents and relatives, and they keep setting up blind speed dates, until the boy and girl fall in love with each other spontaneously ).

[ Author's note : self-arranged marriages and arranged-love marriages are also known as timed-release love marriages and hybrid marriages respectively. ]

Common qualities of MIG ( 21 - 60 )

1. Highest level of education is a bachelors degree or more.

2. Owns a car.

3. Possesses at least one debit and one credit card.

Aspirations ( wishlist ) of the MIG ( 21 - 60 )

1. Transcontinental vacations.

2. Big car ( audi / bmw / merc ).

3. And an even bigger house that they presently own or rent.

Conclusion : India's rising MIG is a mouthwatering prey that no one could resist. Honda-toyota, ford-chevrolet, volkswagen-skoda lure them with hatchs at price points that they could afford. Even the amex has started offering them the credit cards which was previously reserved for the riches ( minimum income eligibility was one million rupees per annum which was lifted a year ago ). While I acknowledge it is indeed a wise decision for a sinking ship, I left wondering are not they at the risk of diluting the brand?!