Middle-Class Indians' Income Grown Three Times In Last Ten Years: SBI Research

SBI Research's research of income tax returns submitted from FY11 to FY22 revealed a positive trend supported by the income class and a considerable decrease in the number of income tax returns with liabilities.

India's weighted mean income increased by approximately three times, from Rs 4.4 lakh to Rs 13 lakh between FY2012-13 and FY202-21, signalling a considerable growth in middle-class income, according to an SBI Research analysis. It is aided by the shift from lower to upper-income groups as well as the increase in taxpayers who did not previously record their income.

"Weighted mean in come of Rs 4.4 lakh in AY14 (basis ITR returns) has in creased to Rs 13 lakh (helped by transition from lower in come group to upper in come group as also buoyancy in the number of tax-filers who were earlier not reporting income) and further to Rs 49.7 lakhs in 2047 with shifting of distribution of tax-filers from lower income group to upper in come group," SBI said in the report.

"25% of ITR filers are expected to leave the lowest income strata by FY47 (against 13.6% leaving the lowest income strata between AY12-AY23)," says SBI research.

It is anticipated that India's per capita income will rise from Rs 2 lakh in FY23 to Rs 14.9 lakh in FY47. According to a recent analysis, it is anticipated to rise in value from $2500 in FY23 to $12400 in FY47.

"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," SBI report says.

"Inter-alia, 13.6% population has left the lower income strata and migrated upwards in AY23 in comparison with AY 12," it added.

"25% of ITR filers are expected to leave the lowest income strata by FY47, with around 17.5% filers expected to shift to income group of Rs 5 lakh-Rs 10 lakh, 5% expected to shift to income group of Rs 10lakh-Rs 20 lakh, 3% expected to shift to income group of Rs 20 lakh-Rs 50 lakh," according to SBI Research.