Archive · 19 Dec 2025
China's Middle Class Outpaces India's Despite Similar Economic Growth
China and India are both very big countries that have grown a lot by using capitalism.
China makes lots of things for the world, and India helps with services like computers.
But even though they did similar things, China has a much bigger middle class than India.
This is surprising because both countries did well after the Soviet Union fell apart.
The World Inequality Report says this is a puzzle because both countries have big populations and opened their economies around the same time.
China's middle class is among the world's largest, while India's is not as large.
Both countries embraced capitalism and opened their economies post-Soviet Union.
China became the factory to the world, while India became the back office.
The disparity in middle class sizes is puzzling given similar economic models.
The finding is highlighted in the annual World Inequality Report.
- Who
- China and India
- What
- Disparity in middle class sizes
- When
- Post-Soviet Union era
- Where
- China and India
- Why
- Different economic outcomes despite similar economic models
- China's Middle Class
- Among the world's largest
- India's Middle Class
- Not as large as China's
- Economic Models
- Both embraced capitalism post-Soviet Union
- China's Role
- Factory to the world
- India's Role
- Back office to the world
- Report Source
- Annual World Inequality Report