The Indian middle class has witnessed significant economic relief and social security enhancements over the past decade, marked notably by effective inflation control and the launch of the Unified Pension Scheme (UPS) for government employees.
Between 2009–10 and 2013–14, inflation remained in double digits, averaging 8.2% annually from 2004–05 to 2013–14, causing persistent strain on middle-class households. Essential commodities like food and fuel experienced sharp price increases, stretching family budgets and undermining saving habits.
Since 2014, however, inflation has been brought under firm control. From 2015–16 to 2024–25, the average inflation rate dropped to around 5%. This improvement has not only been reflected in official statistics but also in the everyday lives of citizens, making essentials more affordable and monthly financial planning more predictable.
Experts attribute this success to sound economic policies, coordinated efforts with the Reserve Bank of India, and improved supply-side management. The middle class, which had borne the brunt of volatile prices, has found renewed confidence in the economy as a result.
The Union Cabinet approved the Unified Pension Scheme on August 24, 2024, which guarantees an assured pension equal to 50% of the average basic pay drawn during the last 12 months prior to retirement for government employees with at least 25 years of service.
For employees with shorter tenures, the pension will be calculated on a proportionate basis, with a minimum qualifying service period of 10 years. The scheme also stipulates a minimum assured pension of ₹10,000 per month upon retirement after completing 10 years of service.
In the unfortunate event of the employee’s death, their family will receive a pension amounting to 60% of the assured pension. The UPS came into effect from April 1, 2025, and is expected to benefit approximately 23 lakh Central Government employees.