The middle class in India is expanding rapidly. According to recent findings, it would account for more than 60 per cent of the country’s total population by the end of FY47, up from 14 per cent in FY05. Recent income tax filing data further substantiates this trend. A look at the numbers in BT Magazine’s The Point
Rs 14.9 lakh ($12,400) is the expected per capita income in India by FY47 compared to Rs 2 lakh (around $2,500) in FY23, as per SBI Research data
India’s middle-class population is expected to grow to over a billion by FY47
Approximately 61 per cent of the country’s population might have an annual income between Rs 5 lakh and Rs 30 lakh by FY47
78% is the expected workforce (565 million) with a taxable base in FY47 compared to 59.1 per cent (313 million) in FY23, as per SBI Research data
Along with rising incomes, the number of income tax returns filed has surged by more than four times since AY13
The percentage of taxpayers with no tax burden has dropped significantly to 64.2 per cent in AY23 from 84.1 per cent in AY12
Nearly 13.6 per cent of the population moved from lower to higher income brackets in FY22 compared to FY11
Private sector jobs contribute the most to the income of middle and rich classes