Deep Dive: A rising middle class is key to 'good growth'

Praveen Jagwani, chief executive of UTI International, said the simplest case of demand-led growth is "more people with more money buying more stuff". "Typically, when more people enter the middle-class, it is axiomatic that their incomes have risen. With the additional money, middle-class buys its way to a higher standard of living - refrigerators, washing machines, cars, homes, healthcare, holidays etc," he said. Jagwani characterised this as ‘good growth', meaning the goldilocks scenario where unemployment and inflation are "just right", as it prevents wealth inequality and require...