Income of Middle-Class Indians Jumps 3 Times In 10 Years; 13.6% Leave Lower-Income Strata: SBI Report

Showing a significant increase in middle-class income, India’s weighted mean income has jumped about three times from Rs 4.4 lakh to Rs 13 lakh between FY2012-13 and FY2021-22, according to an SBI Research report. In the assessment year 2011-12, 16 million people had filed ITR with the maximum concentration of 84 per cent population belonging to income group of up to Rs 5 lakh, said the report titled ‘Deciphering Emerging Trends in ITR Filing: The Ascent of the new Middle Class in Circular Migration’. “In AY23, 68.5 million people filed ITR with maximum concentration of only 64 per cent population still in the income group of up to Rs 5 lakh,” it added. SBI Research said 25 per cent of ITR filers are expected to leave the lowest income strata by FY47, with around 17.5 per cent filers expected to shift to income group of Rs 5 lakh-Rs 10 lakh, 5 per cent expected to shift to income group of Rs 10 lakh-Rs 20 lakh, 3 per cent expected to shift to income group of Rs 20 lakh-Rs 50 lakh. A total of 8.1 per cent population has increased in the income group of Rs 5 lakh- Rs10 lakh, 3.8 per cent population has increased in the income group of Rs 10 lakh-Rs 20 lakh, 1.5 per cent population has increased in the income group of Rs 20 lakh-Rs 50 lakh, SBI report said.