The development of a new variety of English in the Indian context is in many regards a prototypical example of the emergence of what Kachru (1985a) has labelled institutionalized second-language varieties, i.e. varieties of English in postcolonial settings which are based on educated speakers' use of English as an additional language for a wide range of institutionalized contexts (e.g. in administration, in the education system, in newspapers).The model is, in essence, based on two interrelated factors: (1) changing identity-constructions, and (2) changing interactions between two strands of population, namely the settlers (STL) and the indigenous population (IDG).In the following, the process of institutionalization will therefore be described along the lines of Schneider's (2003, 2007) dynamic model of the evolution 167 of postcolonial Englishes - a model that is intended to capture the essentially uniform pattern of variety formation world-wide.