The myth of the Indian middle class.

• Author: Dorschner, Jon P.

India is at an economic turning point. The resounding victory of Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) in the 2014 parliamentary elections has largely been viewed by observers as a ringing endorsement of economic liberalization (a series of neo-liberal economic policies originating in the United States and often termed the "Washington consensus). During the election campaign Modi argued that the BJP is the party of economic development and pledged to implement quickly the neo-liberal economic package.

Economic liberalization calls for economic policies that include: the reduction or removal of "trade barriers" (tariffs), reduction or elimination of labor unions, opening the country to foreign investment, reducing the government's role in the economy (often called reducing "red tape), reduction of government subsidies, privatization of the public sector, tax reduction, the creation of "export zones, tax holidays for foreign investors, and easing the ability of foreign companies to repatriate their profits. Supporters of this package contend that a faithful enactment of this package will encourage economic growth (defined as a growth in gross national product--GNP, defined as the output of goods and services). This is called "growing the pie." In this analogy, when the size of the pie grows, everyone consuming the pie is guaranteed a larger piece. This economic expansion leads to the creation of new jobs, eases unemployment, and results in economic prosperity. Proponents of these policies believe that there is no need to change the economic distribution system currently in place, as the benefits of economic growth automatically "trickle down," through all levels of society. Since everyone benefits, this is called a "win win" paradigm.

Neo-liberalism is dominant in the United States. Most American media coverage portrays the implementation of neo-liberal economic policies in a positive light. Modi and the BJP are well aware of this American bias and artfully emphasize their support for the neo-liberal package to win American support, which they view as crucial for their success.

American media provide exhaustive coverage of the Indian middle class and usually portray this group as the engine of Indian economic development. American articles often depict this group as inherently progressive and enlightened. They are seen as the skilled backbone that will successfully implement the neo-liberal agenda and propel India into prosperity.

How accurate are these portrayals? If the media is itself biased in favor of the neo-liberal economic agenda, its depiction of the Indian middle class may not be accurate. In fact, the Indian middle class may not be the engine of development, but rather an obstacle to the successful implementation of economic policies needed to truly tackle endemic poverty.

The American media also suffers from the usual ethnocentric bias found in the coverage of any foreign country. Americans tend to identify with the Indian middle class because it superfluously mirrors the American middle class. It is English speaking, English educated, and addicted to American popular culture. It increasingly eats American food, dresses in American clothes, watches American television programs, and listens to American popular music. The United States is the number one destination for higher education for the children of Indian middle class families. These students are often profoundly influenced by their American education.

This cultural overlap is seen as evidence that this class has internalized American cultural values. It ignores the actuality that the members of...