Debate on India's K-shaped recovery post-pandemic is flawed: SBI
₹3.5 lakh have declined from 31.8% to 15.8% during FY14-FY21, signifying share of this income group in total income in comparison to their population has been increased by 16%," it added. Interestingly, the Reserve Bank of India (RBI) recently revised India’s growth outlook from its earlier estimate of 6.5% to 7% after it surpassed expectations, clocking impressive growth of 7.6% in Q2, to retain its crown as the fastest-growing major economy in the world.
India clocked 7.8% gross domestic product growth in Q1 FY24. In its semi-annual economic review for FY24, released last month, the finance ministry said while there is widespread optimism about India’s growth prospect among domestic and foreign investors, the risks to growth and stability will primarily emanate from external factors.
Though India has witnessed robust growth, the tightening of interest rates in the West, driven by persistent inflation, resulted in a slowdown in business, investment, and trade, which has had an impact on its exports, it added. Meanwhile, the SBI report said individuals' weighted mean income has risen from ₹3.1 lakh to ₹11.6 lakh during FY14-FY21, with the bank estimating weighted mean income for FY22 to come in the range of ₹12.5 lakh to ₹13 lakh, based on the ongoing trends.
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