How is the growth of Tier 2 cities related to the rise of a new middle class with an emphasis on the culture of consumption? (UPSC 2022)

Tier 2 cities are no longer just dormitory towns; they are becoming centres of employment, mobility and aspiration. As incomes rise and digital access expands, they are also creating a new middle class that defines status through what it buys, uses and displays.

• Economic change: Startups, services, warehousing and improved infrastructure are creating local jobs and higher disposable incomes.
• New middle class: More households now fall in middle-income and affluent groups, especially among young, educated consumers.
• Consumption culture: Spending is shifting from basic needs to education, branded goods, smartphones, travel, eateries, malls and premium housing.
• Digital push: E-commerce, UPI, BNPL and social media have spread urban tastes, making buying easier and more aspirational.

Thus, the growth of Tier 2 cities and the rise of the new middle class reinforce each other. However, this must be backed by stable jobs and responsible credit, otherwise consumption may outpace real purchasing power.