Showing a significant increase in middle-class income, India’s weighted mean income has jumped about three times from Rs 4.4 lakh to Rs 13 lakh between FY2012-13 and FY2021-22, according to an SBI Research report. It is helped by the transition from the lower-income group to the upper-income group as also buoyancy in the number of tax filers who were earlier not reporting income.
According to the SBI Research report, “13.6 per cent population has left the lower income strata and migrated upwards in AY23 in comparison with AY12”
India’s per-capita income is expected to increase from Rs 2 lakh in FY23 to Rs 14.9 lakh in FY47. In dollar terms, it is expected to increase from $2500 in FY23 to $12400 in FY47, it said in the report recently.
In the assessment year (AY) 2011-12 (FY11), 16 million people had filed ITR with the maximum concentration of 84 per cent population belonging to income group of up to Rs 5 lakh, said the report titled ‘Deciphering Emerging Trends in ITR Filing: The Ascent of the new Middle Class in Circular Migration’.
“In AY23, 68.5 million people filed ITR with maximum concentration of only 64 per cent population still in the income group of up to Rs 5 lakh,” it added.
SBI Research said 25 per cent of ITR filers are expected to leave the lowest income strata by FY47, with around 17.5 per cent filers expected to shift to income group of Rs 5 lakh-Rs 10 lakh, 5 per cent expected to shift to income group of Rs 10 lakh-Rs 20 lakh, 3 per cent expected to shift to income group of Rs 20 lakh-Rs 50 lakh.
A total of 8.1 per cent population has increased in the income group of Rs 5 lakh- Rs10 lakh, 3.8 per cent population has increased in the income group of Rs 10 lakh-Rs 20 lakh, 1.5 per cent population has increased in the income group of Rs 20 lakh-Rs 50 lakh, SBI report said.
“0.2 per cent population has increased in the income group of Rs 50 lakh-Rs 1 crore, while close to 0.02 per cent population has increased in the income group of above Rs 1 crore,” the report added.
About 0.5 per cent of filers are expected to shift to an income group of Rs 50 lakh-Rs 1 crore, and 0.075 per cent to income group of above Rs 1 crore by FY47.
Indian population is expected to increase to 1610 million in FY47 from
1400 million in FY23. Correspondingly, the country’s workforce is expected to increase to 725 million in FY47 from 530 million in FY23, increasing the workforce share in population from 37.9 per cent in FY23 to 45 per cent in FY47.
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