SBI study questions flawed narrative of K-shaped recovery, highlights five major trends of Indian economy
India's GDP likely to grow by 7.3% in FY24: NSO data SBI indicated that income-tax data, rising female labour force participation and the rising popularity of food-ordering platforms paint a healthy picture of India's growth. Here are five major trends that the SBI report has highlighted about the Indian economy: "The gap between different income levels, measured by the Gini coefficient of taxable income, decreased notably from 0.472 to 0.402 from FY14 to FY22 respectively," the SBI report said.
The Gini coefficient, also known as the Gini index or Gini ratio, is a measure of economic inequality in a population. Moreover, about 36.3 per cent of taxpayers shifted from lower income brackets to higher ones.
"The income disparity of people earning less than ₹3.5 lakhs has declined from 31.8 per cent to 15.8 per cent during FY14-FY21. Top 2.5 per cent of taxpayer's contribution in income has declined from 2.81 per cent to 2.28 per cent during FY14-FY21," the report further said.
"The decline in income inequality is because of a great migration at the bottom of the pyramid; 36.3 per cent of individual ITR filers belonging to the lowest income in FY14 have left the lowest income group and shifted upwards resulting in 21.1 per cent more income for such individuals during FY14-FY21," said the SBI report. Also Read: GDP growth at 7.3% in govt’s crystal ball The SBI report highlighted the visible change in the income pattern of MSMEs (micro, small and medium enterprises) as the formalisation drive brings more entities into the net.
"Around 19.5 per cent of majorly micro-sized firms have been able to shift their income upwards. Out of these, 4.8 per cent of firms have transitioned themselves into small firms, around 6.1 per cent of
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