Income disparity in India has declined 74.2% since FY14, reveals SBI study
income disparity coverage for those earning up to Rs 5 lakh annually between fiscal years 2013-14 and 2022-23, said a State Bank of India (SBI) report on Friday. To paraphrase the «often myth of worsening inequality» in India, the research report from the Economic Department of SBI has analysed the income disparity curves of assessment years (AY) 2014-15/FY14 and AY24/FY23.
A comparison of disparity in income during AY15 and AY24 shows that there is a clear rightward shift in the income distribution curve, signifying people in lower income brackets are increasing their income to converge towards their share in population, it said.
«Our analysis shows that there has been a cumulative 74.2% decline in income disparity coverage for those earning up to Rs 5 lakh. This shows the continuous efforts of Govt are reaching the bottom of pyramid — that is leading to increase in income of 'lower income group' people,» said the report titled 'How Tax Simplification has given a necessary fillip to ITR Filing'.
For people with income up to Rs 3.5 lakh, the share in income disparity has reduced from 31.8 per cent in FY14 to 12.8 per cent in FY21, signifying share of this bucket group has increased by a sharp 19 per cent income in comparison to their population, it added.
Lower income group (less than Rs 5.5 lakh) has registered a positive growth rate for all years in last decade (except AY20 — due to Covid pandemic), it added.
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