On 21st September, Prime Minister Narendra Modi addressed the nation and announced next generation GST reforms to come into effect from 22nd September, the first day of Navratri. During his address, he also referred to how these reforms will be beneficial for the “neo-middle class”, a concept he has emphasised in recent years.
My address to the nation. https://t.co/OmgbHSmhsi
— Narendra Modi (@narendramodi) September 21, 2025
The idea of the neo-middle class was first introduced by PM Modi in 2012, when he was Chief Minister of Gujarat. He used the term again in 2024, noting that nearly 25 crore people have moved out of poverty in the past decade, forming a new class with aspirations and opportunities.
The neo-middle class refers to people who have been lifted out of poverty but are not yet firmly established as middle class. They are just above the poverty line, beneficiaries of welfare schemes and economic growth, and represent India’s aspiration to move millions into a more secure and aspirational life.
According to recent figures from Niti Aayog, nearly 25 crore people have been lifted out of multidimensional poverty since 2013-14. The numbers provide a statistical backing to this idea. PM Modi, in 2024, highlighted that this category is now central to India’s growth story and the ambition of a developed nation by 2047.
