This chapter shifts the analysis of the rural middle class from Marx's notions of classes defined on the basis relations of production to a Weberian perspective, examining the formation of the rural middle class through market relations, occupational mobility, education, skill differentials and caste. We have so far seen that the process of industrialisation in Rahatwade and Nandur has resulted in the formation of new forms of livelihood and have established conditions for the development of the middle class. In what follows, I aim to explore the ways in which the boundaries of the rural middle class are shaped by shifts in the direction of employment aspirations. I reveal how the acquisition and distribution of various forms of capital – defined by Weber as including education, skill credentials and social networks – have enabled segments of the rural population to take advantage of industrialisation, gaining access to the middle-class labour market.

The first section provides an account of the ways in which Max Weber defined the term ‘class’ in his project of theorising social stratification, and outlines Weber's categorisation of classes – the property classes, commercial classes and social classes – which are less well-known than other aspects of Weber's theoretical work. The second section outlines the ways in which Weber defined the middle class, followed by a brief overview of how the Indian middle class is situated within the Weberian framework. The third part provides a brief account of Weber's conception of the caste system and its economic impact. In the fourth section, the literature on caste-class relations in India is reviewed. Following a brief overview of the socio-economic context in Rahatwade and Nandur, the fifth section introduces the occupational class structures within the Weberian framework and identifies the rural middle classes using empirical data.