OpinionAndy Mukherjee, Columnist
Why India Fell Off the Global Middle-Class Map
December 19, 2025 at 4:00 AM GMT+8
By Andy Mukherjee
Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia. Previously, he worked for Reuters, the Straits Times and Bloomberg News.
Stymying the emergence of a global middle class in India.
Photo: Monique Jaques/Corbis/Getty
In 1980, neither China nor India had much representation in the “global middle class” — people who neither belong to the bottom half of the income distribution nor rank among the top 10% worldwide. Almost a half-century later, things have changed — but in very different ways. China now accounts for a sizable share of the more affluent middle-income earners, while India seems to have faded in relative importance.
This finding, nestled in the annual World Inequality Report, is a puzzle. After all, the only two countries with billion-plus populations are both believed to have done well by embracing capitalism and opening their economies after the collapse of the Soviet Union. China became the factory to the world; India became its back office. So why should the outcomes for their citizens be so different?