SBI Research Forecasts Sevenfold Increase In Indian Per Capita Income by FY47
According to SBI Research, the per capita income of Indians, derived from income-tax filings, is projected to rise significantly, reaching Rs 14.9 lakh in FY47 from Rs 2 lakh in FY23, aligning with India's 100 years of Independence. This translates to a dollar equivalent of USD 12,400 in FY47, a substantial increase from around USD 2,500 in FY23.
The progression is attributed to the expansion in the number of tax-filers, which has played a pivotal role in driving this upward trend. Soumya Kanti Ghosh, the Group Chief Economic Adviser at the State Bank of India, pointed out that the mean income grew from Rs 4.4 lakh in AY14 to Rs 13 lakh in FY23.
This rise in income is largely influenced by the burgeoning middle class, whose proactive approach is not completely captured by existing research. Ghosh highlighted that this segment exudes optimism and adaptability, indicative of a unique and transformative phase. This transformation is underpinned by the formalisation of the economy and the rise of the gig economy.
In terms of demographics, India's population is projected to increase from 1.4 billion in FY23 to 1.6 billion in FY47. In tandem, the workforce is expected to surge from 530 million to 725 million during the same period, driving the workforce share in the population from 37.9 per cent to 45 per cent.
SBI Research forecasts the taxable workforce to escalate from 313 million in FY23 to 565 million in FY47. Correspondingly, the number of income-tax filers is anticipated to soar from 70 million in FY23 to an impressive 482 million in FY47.
