10 Changes for India's Middle Class Post-COVID

Rishi Dhariwal, Group Head Branch Banking, AU Bank

 

We are entering the beginning of the end of COVID-19. In the times to come, our current generation and ones to follow, will address the world as pre- and post- COVID. This is purely because human race, across the globe, has been forced to make lifestyle changes and adapt to life in the company of this pandemic. The same will not be restricted only to the personal sphere, but also impact how we conduct business. Besides, its impact on a highly social culture like India, would be economic as well as sociological.

As I sit observing empty streets and quiet buildings around me, I note those small changes that all middle-class families and their children will experience in the new post COVID-19 era, lyrically.

 

1. Thoda hai, thode ki zaroorat hai –

In the last 10 years, we became used to life where wants over-shadowed needs. Brand ambassadors, advertisements and films nurtured our demand. We were consuming something we didn’t require, and it gave us superficial pleasure. But that is about to change. Our purchases will show preference towards our needs – groceries, Health & Hygiene, Clothing, etc. While our desires – leisure and luxury purchases – are bound to take the backseat for a later time. Hence, Gross Domestic Product will take a hit, but India’s Gross Happiness Index will be at an all-time high.

 

2. Aage bhi jaane na tu –

Liquid cash is critical for middle-class and lower middle-class families, migrant workers, etc. However, such crises usually catch us out of the blue. Post COVID, instruments which were ignored due to high returns on equity as well as Mutual Funds will come back and gain prominence. In fact, every Indian will invest in an Emergency fund like COVID Shield Deposit, a fixed deposit of sorts, which would be used only during extreme emergencies like this pandemic. It would be non-callable in nature, meaning banks will not allow withdrawal until a crisis has struck.

 

3. Aare deewano mujhe pehchano –

Lockdown has played a very crucial role in bridging the generation gap in Indian families, particularly among urban Indians. Today, elders have learnt to adapt to technology with help of the juniors, and the young turks have learnt to sustain, relish and enjoy the previously missing gift of family time. This social change that has happened will soon find its reflection in popular culture – we should be ready for a new Bollywood, where voyeurism will be replaced by values. We are at the dawn of a more socially relevant wave of family films being presented to the generations to come.

 

4. Aaja meri gaadi main baith jaa –

Community travel will take a backseat and will be done only in extreme conditions. Today, a middle-class family would prefer to invest in a small passenger car, than risk travelling in crowded trains and buses. Yes, I use the word invest, because it will mean better health and hygiene, rather than just convenience.

 

5. Tera saath hai kitna pyara –

Indians will remain extremely social. They will indulge more and more in relationships, but it will take a virtual turn. Not many will be met, yet many would be met online. I foresee many youngsters reviving lost family relationships using technology. Relatives whom we have not spoken to in last decade or so, will have the most interesting stories to share.

 

6. Saathi haath badhana –

As per Google, there has been approximately a 40% surge for home-made recipes across the globe. This implies that families are learning to cook by themselves using available or frugal ingredients. Daily chores like sweeping and washing utensils are becoming new forms of workouts. This is a boon and a bane in my understanding; because at one end, we will see family bonding and a fitter India; but on other hand, domestic help – maids, drivers, etc – might face unemployment or declining income. Again, it would be prudent for families to support their staff to manage their finances in this time.

 

7. Hum who hai jo do aur do paanch bana de -

Indian businessmen are very astute in their approach. However, this lockdown has made them learn a few lessons the hard way. Particularly, starting  to build an online presence. With support of online giants and with recent partnership of Facebook & Jio, Indian micro businesses like kirana shops, mechanics, plumbers, etc, are set to take their reach to a much wider local audience. With this, not only would the Indian economy become stronger for any such future COVID-like attacks but would also have strengthened its backbone with small businesses catering to surging consumer demand with higher efficiency.

 

8. Khilte hai gul yahan –

Our grandparents always taught us to take up gardening, as it makes us calmer and more focussed. Post COVID, we will likely develop a psychology of self-sustenance. To create as much as one can within their homes and housing complex, for consumption. Urban farming will be the new way of life.

 

9. Bolo Om Shanti Om -

One of the most important learnings from the lockdown has been ‘patience.’ This is going to have a ripple effect on the generations to come. We had become extremely impatient and demanding with our surroundings. One big direct psychological change now could be increased empathy for others and reduced road rage and petty fights. We will turn out more considerate towards our fellow beings.

 

10. Ye kaun chitrakar hai –

COVID-19 has been a boon for entrepreneurship. Each of us in our lockdown time has explored a new skill or talent that was buried deep. Be it music, cooking, art, stories, blogging, film making, etc, these passions will drive the next wave of entrepreneurship. Aided by technology, the world will be their marketplace. I make this point because somewhere, the middle-class India had forgotten what their passions were, until they had a chance to sit with them again.

 

As I reach the end of my blog, I express optimism for a new India, where a fitter and more entrepreneurial middle-class will take centre-stage for the next consumer boom, with their choices and talents

Learn more about 5 essential financial instruments in the FY20 financial plan in the post-COVID-19 Era.