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The middle class in India: Issues and opportunities

As argued in a previous study, the rise of a large middle class in Asia could become a key source of sustainable domestic consumption there, with potential repercussions for the global economy. In this study we focus on measurement and development of this demographic group in one of the biggest Asian economies, India. India's middle class is already a growing consumer market and contributes to the country's robust economic growth. At the same time, the rise of the middle class presents some challenges. One is improving the match between the skills of this group and the demands of the marketplace. Another issue is increasing middle class engagement in India’s political system. Despite the negative impact of the financial crisis, the Indian middle class remains optimistic about their own future and that of the Indian economy.

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Trends in India's corporate financing

In the past several years, Indian corporations have utilised a variety of sources such as equity markets, foreign direct investment, and private equity to raise capital. Capital availability through these sources was significantly affected by the crisis as both domestic and foreign investors turned risk averse. Small and medium enterprises are being particularly hard-hit. Although markets are rebounding and investments are rising once again, it may take until 2010 for capital flows to fully recover. This paper provides an overview of the various sources of corporate financing, the impact of the crisis, and the outlook over the next year.

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