According to a report by SBI Research, the per capita income of Indians through income tax filing is projected to grow from US$ 2,398.79 (approximately Rs. 2 lakh) in FY23 to US$ 17,870.96 (about Rs. 14.9 lakh) in FY47, coinciding with India’s 100th year of independence.
SBI’s Group Chief Economic Adviser, Ms. Soumya Kanti Ghosh, revealed that the mean income in AY14 was US$ 5,277.33 (Rs. 4.4 lakh). By FY23, it surged to US$ 15,592.11 (Rs. 13 lakh) due to a higher number of tax filers. Ms. Ghosh noted the expansion of the middle class, characterized by forward-thinking and hope. She suggested this evolving class might require new definitions, reflecting its dynamic nature amidst a growing formal economy and gig sector.
The Indian population is expected to reach 1.6 billion by FY47, up from 1.4 billion in FY23, with the workforce increasing to 725 million from 530 million. This would raise the working-age population from 37.9% in FY23 to 45% in FY47. SBI Research projects a workforce with taxable income to grow to 565 million by FY47, from 313 million in FY23. Income tax filers are predicted to surge from 70 million in FY23 to 482 million in FY47.
