The "Average" Indian

That India is booming is obvious to everone – especially to those living here. Assets of Indian industries are still cheap. Foreign companies are buying up Indian assets everyday (called FDI for Foreign Direct Investment), as a result of which the Sensex is climbing back to its high of 12000+, from a low of 8900. Indian banks are in everyone's sights, but the govt. still won't let that happen except in small amounts (upto 10 %). A very high speed rail link is being planned to tie Pune, Nashik and Mumbai together – half an hour commute time from Pune to Mumbai! The new International airport in Vashi has now obtained official approval and work is starting – that will enhance Pune's position as a major city since it is at the other end of the Expressway. Some of the price rises in real estate on the Western side of the city are due to this – the going price for a modest 5000 to 8000 sq. ft. lot in Sindh, National, Abhimanshri societies is about Rs.2.5 Cr to Rs. 4 Cr. ($500K to $900K) - comparable to Silicon Valley, in a land where the per capita income is only $300 per annum!

Everyone believes, there is still room for price growth once the developments actually take place. Of course in exclusive Koregaon park, it is almost impossible to get a bungalow below Rs. 4 cr ($900K), and most of them are in the 5 cr. Range ($1M+). While there are lots of people with that kind of money to throw around (in Mumbai they are building flats with a starting price of Rs. 21 cr and upto Rs. 27 cr, and you can only buy these by invitation!), there are millions making the minimum wage of Rs. 3500 per month, and perhaps many millions more making less than the minimum wage. These people are generally in perpetual debt. The gap is widening as the Govt spends more money in the cities and banks lend in the cities, while the hinterland is neglected. Farmers still commit suicide during the summer months, when they realize they have been wiped out by a monsoon which is a few weeks late. In the meantime, the govt plans massive infrastructure projects in Mumbai worth 10,000 crores each, in order to make driving easier from Bandra to Marine drive, and does nothing to address the plight of the farmers except for occasional helicopter tours (reminds one of Bush flying over New Orleans). Indians love development – love shopping malls, love the whole concept of "fast develop ho raha hai".

Anyway, you get the picture – I have no doubt in my mind that in 5 year's time, the major metropolitan areas will be as expensive to live in as Tokyo, Taiwan or Seoul – the army of work people who support this lifestyle will be living in adjacent townships or suburbs, eating, buying and living completely different life styles from the city folks. Already, the IT folks, businessmen, etc (the high income "average" Indian) are only shopping at malls, where shoes cost Rs. 2500+, trousers cost the same, groceries are bought off shelves, green groceries come wrapped in plastic, etc, while the "other" "average" Indian buys chappals for Rs. 100, can get a a pair of pants stitched for Rs. 250 and goes to the mandi and buys green groceries for less than Rs. 100 per day (Rs. 5 for a bunch of kothmiri, alu and onions for Rs. 20 or so) etc.

Is there a "real" average Indian who lives in between the two averages? I doubt it.