"The ethnic group with the highest concentration of professional workers was Indian - with British Indians also having the highest rate of home ownership - with 71 per cent living in a property which is either owned outright or owned with a mortgage/loan or shared ownership," the report notes.
"The diversity contained with the term 'ethnic minority' is now so broad - both within each minority and between minorities - that considering ethnic minorities as a monolithic group for public policy purposes is now increasingly meaningless," it states.
"Categories such as 'South Asian' do not only serve to mask over noteworthy economic and social disparities between Britain's Indians, Pakistanis, and Bangladeshis - but also mean that very real forms of diversity within these sizeable groupings at times go unrecognised," it cautions.
The report analyses the
"These days, integration won't happen naturally... Recent years have seen conflicts generated far away from our shores break out on our streets. The politics of the Indian sub-continent and the Middle East for example are no longer 'quarrels in a faraway country between people of whom we know nothing'," Sir Trevor Phillips, senior fellow at Policy Exchange, says in his foreword.
"Policy Exchange's portrait of our nation teaches us one thing above all: our future rests on managing our diversity, and complacency is the surest pathway to the growth of extremism and conflict," he concludes.
Among the key findings of the analysis was that almost three in four people - 72 per cent of those polled - believe that children should be taught to be proud of
"Government agencies should also commit to disaggregating larger groups which are both ethnically and religiously diverse, as well as being far from homogeneous in terms of migratory background - especially the Indian and Black African ethnic categories," it recommends.
The think-tank points out that the first 'Portrait of Modern Britain' was carried out for Policy Exchange in 2014 by two young researchers including one named
The new project aims to identify how governments can successfully focus on what unites the different ethnicities of the country to build on the latent strengths of an integrated British identity and culture.