We have an Aspirational Society – Are we prepared for it.

 We have an Aspirational Society – Are we prepared for it.  

Dinesh K Kapila, CGM (Retd) NABARD

(Published in The Business Sandesh dated 03/02/2026)

 Around Republic Day is an appropriate time to reflect if we are building a nation in consonance with the aspirations of our youth. The personal experience I have, across India is that our youth seek more prosperous, fruitful and meaningful lives. The desire for economic progress and better governance runs deep. As a developmental banker, this was observed closely, including the demand for credit as a tool to further economic progress as also for consumption. Our developmental initiatives and paradigm must reflect this. More important, the political leadership must understand the evolving change.  Do our governance structures and models reflect the due incremental calibration which is required.  Are we administratively equipped for the changeover or ready to adapt our governance structures and mode of functioning. Are the three pillars, Legislative, Executive and Judiciary understanding this imperative. Is the Fourth Pillar, the media, understanding the imperative to disseminate the nuances of these aspirations. Equally important, are we equipping our young demography profile, the youth, with the necessary understanding of governance, awareness, ethics, duties, civic sense and soft skills.

 

The concept of an aspirational society represents a calibrated shift in mindsets, it’s a triple shift at the sociological, governance and developmental levels. It is not in conformity with the traditional concept of age old societal driven aspirations. Aspiration is not merely a psychological state but a distinct phenomenon, a sincere intent and effort towards progress. The aspirational society is inherently linked to social meaning and status and is defined by a collective shift from "survival" to "lifestyle," where citizens actively seek upward mobility, a better quality of life, and premium experiences. In India, this transition is currently visible through a mix of macroeconomic data and shifting social behaviors. 

 

An aspirational society is defined by the degree to which its institutional architectures expand its navigational capacity for all citizens, moving from individual responsibility to one of structural empowerment. In an aspirational context, consumption is viewed as an intricate part of a social system where individuals disclose their socioeconomic position through material goods and behaviors. This leads to a social dynamic where the desire for "distinction" drives economic activity, a factor which often escapes policy makers. We have to understand our youth in this context.

 

We can assess an aspirational society by the dynamic indices of social mobility. The World Economic Forum’s Global Social Mobility Index (2020) provides a comprehensive framework, ranking countries based on their ability to foster equality of opportunity. Varied measures across nations underline that an aspirational society is not merely one where people "hope" for a better life, but one where the probability of actualizing that hope is measurable and supported by institutional foundations. The transition to an aspirational society involves managing the rising expectations that accompany economic development.

 

Managing transitions, whether digital, economic, or developmental or environmental, is a hallmark of successful aspirational management. The suggestion is that for a society to evolve and then remain aspirational, the state must be "anticipatory, adaptable, and agile," prioritizing people-first approaches that mainstream human development into every decision-making arena.  Our three pillars of governance need to work on being anticipatory, adaptable, agile and adroit. The productive energy this will release will bring about profound positivity in our economy and development. Another A, Apathy in governance, has to reduce. The Social media has opened vistas and created exposure levels which demand an understanding of its impact and the imperative to initiate reforms and create effective governance structures.   

 

India currently holds the world's largest youth population, with 65% of its citizens in the 15-59 age group and a median age of approximately 28 to 29 years. This demographic dividend is expected to peak around 2041, offering a historic window for economic growth through increased savings, investments, and consumption. However, the realization of this potential is far from guaranteed. In 2024, data suggested that the youth accounted for 83% of the country's unemployed, highlighting a significant "aspiration gap" between the ambitions of the younger generation and the realities of the labor market. Furthermore, 78% of the incremental employment created between 2018 and 2024 was in low-productivity sectors such as agriculture, construction, and trade, with a heavy reliance on self-employment and casual labor. A thriving formal sector contrasts with a struggling informal sector; it poses a serious risk to social cohesion. Without structural economic reforms to address regional divides and gender gaps, notably the heavily skewed sex ratio of 943 women per 1,000 men, the demographic dividend could potentially transform into a social and political quagmire.  

 

The Indian consumer market is projected to become the world’s third-largest by 2027, driven by a rapidly expanding middle class that is moving out of poverty and aspiring toward higher living standards. This shift is characterized by "premiumization," where households across both urban and rural areas are increasingly opting for high-quality, high-value products. This transition is not limited to daily essentials. There is a broader shift toward "elevated living" and discretionary spending, however, this consumption story is bifurcated: while premium segments are booming, mass-market volume growth remains slow and sensitive to inflationary pressures.

 

Rural India’s transition from a "subsistence" economy to an "aspirational" one is characterized by a closing gap between urban and rural consumption patterns. In 2026, aspiration in rural India is no longer just about basic survival; it is about connectivity, convenience, and status. There is a marked move from unbranded loose goods to branded, packaged products. Even in the face of inflation, rural consumers are opting for smaller "bridge" packs of premium soaps, detergents, and snacks rather than reverting to cheaper unbranded alternatives. The "digital divide" is being bridged by the BharatNet project and cheap 4G/5G data. Rural online shoppers are growing at a CAGR of 22% (2019-2026). This is driven by "social commerce", buying products seen on social media and the expansion of logistics. Rural India now consumes OTT content at rates nearly at par with urban India, which directly influences fashion and lifestyle aspirations.

India’s Digital Public Infrastructure (DPI), commonly known as "India Stack," has become the digital equivalent of highways and utility grids, serving over 1.3 billion citizens and processing more than 10 billion monthly transactions. This infrastructure has transformed the economy. The impact on social mobility is profound. A fundamental challenge to India's aspirational ambitions is the significant gap between the educational output and industry requirements. The 2025 India Skills Report reveals that only 54.8% of young Indians are employable, with many lacking the digital fluency and soft skills required in the modern workplace. The "skill gap" is not just about a lack of effort but a lack of alignment. We need to embed 21st-century skills. Furthermore, a significant digital divide persists.

 

To meet the high expectations of an aspirational society, we need to undertake institutional reforms that go beyond traditional welfare schemes. One critical area is geographic mobility; despite nearly 30% of the population being internal migrants, only a small fraction move for work, partly because social benefits are administered at the state level and are not easily portable. Making these benefits portable and reducing state residency requirements for government jobs would allow for a more efficient allocation of talent across regions. Can we fomalise informal work and protect labour rights. States and Municipalities need to undertake their own reforms too.  MSMEs need the removal of constraints on credit and the private sector needs to lead the generation of jobs in the labor intensive sector. Vast accessibility gaps remain in public transport and urban infrastructure and need to be addressed.  NGOs can supplement government efforts by providing coaching, mentorship, and guidance to children from backgrounds of poverty, helping them to "aspire and achieve" superior career options.

 

The "Vision 2047" initiative can address the aspirations of a young demographic profile as it  represents an ambitious roadmap. This entails a differentiated policy approach where less-developed states focus on strengthening fundamentals like health and education, while more advanced states prioritize the next generation of reforms in technology and service delivery. The focus has to be on economic empowerment, social equity, and technological advancement. The persistence of the skill gap, the lack of private sector led investment, a low manufacturing base and regional disparities remain significant hurdles. Alongside, the distance between the executive (and bureaucracy) from the average citizen has to be reduced, the somewhat feudal oriented mode has to be toned down. The quality of governance, opaque transparency, poor productivity and corruption continue to be major obstacles. Politically, a new language of aspiration and development has to evolve. The common man has to feel valued, that dignity of being recognized as an individual is still a mirage.  Resistance to change within the governance structure is also a challenge

 

To sustain the momentum, we need to prioritise "people-first" governance, prioritizing the creation of better and more inclusive jobs in labor-intensive sectors. Growth has to be shared across a larger base. To build an "Aspirational India", the governance structure has to shift, to  Transparency in functioning, with enhanced productivity, higher effectiveness and efficiency,  goals, policies and targets would be of limited efficacy in case governance levels are not stepped up.

Coming to citizens, instilling civic sense in Gen Z (born roughly between 1997 and 2012) requires a shift from traditional "lecturing" to engagement through authenticity, digital literacy, and social impact. This generation is highly socially conscious but often skeptical of traditional institutions. To effectively bridge the gap between digital activism and physical civic duty, we can focus on digital citizenship, civic tech apps, digital responsibility, encouraging involvement on local projects, skill based volunteering. The youth value transparency, we need to reduce indifference by explaining how individual actions, like voting in local elections or paying taxes, directly impact the issues they care about and we should set out civic sense not as a set of rules, but as a social contract that ensures the community functions for everyone's benefit. We need a more interactive mode of governance and schools and colleges have to be avenues for reinforcing civic sense, values, ethics, responsibilities, empathy and a sense of being a good citizen and an Indian. The older generations have to be mentors on such values and systems. Lastly, we require a young generation focused not just on engineering and commerce but also on the humanities, arts and a higher awareness and understanding of culture.