New Delhi, March 22 -- Indian trade negotiators and diplomats soliciting foreign investment never miss an opportunity to showcase the country's swelling middle and its robust legal system as the cornerstone of a vibrant democracy. Data emerging from recent research, however, shows both these bragging points to be over-wrought and unsaleable today.

The size of India's vaunted middle-class is projected to go from 500 million individuals currently to over 700 million in 4-5 years. This expansion is expected to translate into growing consumption of goods and services, apart from increased household outlays on education, healthcare and investment products.

Speculating on how much of this will come to pass is a parlour game. What is really cr...