India's per-capita income is reportedly expected to increase from Rs 2 lakh in FY23 to Rs 14.9 lakh in FY47.
As per an SBI Research report, middle-class income has significantly increased as India's weighted mean income has risen about three times from Rs 4.4 lakh to Rs 13 lakh between FY 2012–13 and FY 2021–22. With the jump, lower-income groups have transitioned to the upper-income group, and there has been a buoyancy in the number of tax filers who were earlier not reporting income.
According to the research report, "13.6 per cent of the population has left the lower income strata and migrated upwards in AY23 in comparison with AY12".
India's per-capita income is expected to rise from Rs 2 lakh in FY23 to Rs 14.9 lakh in FY47. In dollar terms, there would be an expected increase from $2500 in FY23 to $12400 in FY47, it said in the report recently.
Coming to the assessment year (AY) 2011–12 (FY11), 16 million people filed ITR, and a maximum concentration of 84 per cent population belonged to the income group of up to Rs 5 lakh, as per 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 a maximum concentration of only 64 per cent of the population still in the income group of up to Rs 5 lakh," the report added.
Also, around 25 per cent of ITR filers are expected to move away from the lowest income strata by FY47, and approximately 17.5 per cent of filers are expected to move to the income group of Rs 5 lakh-Rs 10 lakh. Meanwhile, 5 per cent expect to shift to the income group of Rs 10 lakh-Rs 20 lakh, and 3 per cent are expected to shift to the income group of Rs 20 lakh-Rs 50 lakh.
"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.
With the Indian population expected to increase to 1610 million in FY47 from 1400 million in FY23, India’s workforce too would increase to 725 million in FY47 from 530 million in FY23.
