I’ve been following Indian Politics for quite a while now. Decades, actually. Both “inside” and “Outside” the major “Parties” and “Movements”.
Just look at this photo that expresses the reality as it exists now.
This meme can be interpreted in multiple ways (like everything in life!). But I see it in two basically different ways.
- Almost ALL “Main Stream” political parties resort to pampering the poor (farm loans, free electricity ruining discoms, etc etc AND big time tax breaks and “Incentives” to the super rich including foreign investors & MNCs.
- That the Middle Class is the *strongest* of the three having carried the burden of the other two fickle segments for 75 years.
Tax payers pay taxes in a plethora of ways, not just as Income Tax. Starting from taxes on petroleum products, to white goods, automobiles, packaged foods, cooking oils, etc etc etc. Everything that people use is taxed! Everything!
Thats why, the BJP, in it’s before-Modi avatar (Vajpayee etc) was a “Middle Class” party. But Modi converted it into a “Hindu” (only) Party so that he could garner the huge lower strata of vote bank that had earlier decimated into castes by the Congress ever since Independence. Combined with it’s extreme appeasement of Muslims & Christians (again in innumerable ways!) the Congress easily won elections leaving the tit bits to the regional satraps of castes.
Modi broke this divide-Hindu & rule strategy with strong Hindutva. Having opened the eye of Hindus, the BJP swept the polls everywhere. The first Modi wave.
To retain the hold, BJP then had to plough in humongous resources (after all the Hindu Poor is huge in population!) into Poor appeasement. Roads, Water supply, free food, electricity supply, cooking gas, Houses, rations, rural employment, all sorts of National schemes for the poor, etc etc. The list runs into pages!
All that costs money! So the Super Rich had to be seduced into setting up huge projects. So the stream of “Incentives” began and blew out of proportions in 2021-2022 thanks to the impact of the Chinese Virus (Covid).
Guess which segment had to bear the burden? Income Tax is paid by a mere 6.5% of India’s ADULT population (much lower of the whole population!)
Compound that with massive Tax-Evasion by the Super Rich. Apparently, only 1% of India pays taxes! Proof.
Who does that leave out? The hardworking, constantly aspiring *Middle Class*!!! Taxes are deducted at source. No escape! The Super Rich who run companies ensure they please the GoI Masters and ensure all MIG income paid by them are taxed.
Given that the Tax Burden has been back-breaking on the “strongest” of segments – the Middle Class – is it any wonder that the Annual Savings Rate has plummeted to dismal levels? See Chart below. Source CEIC Data.
The joke is on the Blind Bhakts of the Middle Class. While being robbed to feed the poor, the MIG is being sucked dry, and soon the % of poor will increase with MIGs dropping down – not just because of the pandemic!
Urban infrastructure is in pathetic condition, while new roads are built in rural areas. The Smart City eyewash is a cruel joke on urban MIGs. The “strong” foreign ties capture the imagination of aspirational Middle India while totally forgetting the state of schools for their children, stable & continuous water and electricity supply!
But there’s light at the end of the Middle India Tunnel. It is becoming more politically active. More civic conscious. More strident in demanding a level playing fiend. Less attached to quotas and appeasement.
The days of Masjid-Mandir politics has gone by. The days of delivery of basic Government services has come. And a few political leaders have seen it written on the horizon. Kejriwal. Prasanth Kishor. KCR. Stalin. To name a few. They realise that their only path to power (and retaining it) is actual development on the ground, for *everyone*! Tragically, Modi gave them the mantra – Sabka Saath, Sabka Vikas.
Every State will become stronger, as the *strong* Middle India votes on local issues and strengthens the smaller, more agile and performing local parties. While the BJP promotes division to retain Central Power and a strong *external* force.
The writing is on the wall for all to see. The early bird always catches the feast!