India’s Per Capita Income To Soar By 7.5 Times By FY47: SBI Research

India’s per capita income is set to increase by 7.5 times to Rs 14.9 lakh per annum by FY47 from Rs 2 lakh in FY23, as per a latest study report  by SBI Research economists on Tuesday.

PM Narendra Modi, in his 77th Independence Day speech at Red Fort, said that the next five years are important for India to achieve its 2047 goal and has set a target to become the third largest economy by 2047.

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“A developed India in 2047 is not just a dream, but the resolution of 140 crore Indians,” PM Modi stated.

The SBI study further claimed that the weighted mean income of tax filers will increase to Rs 49.9 lakh in FY47, from Rs 13 lakh in FY22, owing to the transition to an upper-income group economy from a lower-income group and tax buoyancy. 

It also noted that an increase in formalisation owing to Goods and Services Tax and UDYAM portal for MSMEs was propelling income tax returns. 

The report showed that the number of tax filers increased from 2.1 million in FY13 to 85 million in FY23. SBI economists note that the number is further expected to increase to 482 million by FY47, the share of the taxable workforce may rise to 85.3% from 22.4% in FY23.

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The number of people filing zero tax returns would see a decline by another 25% by FY47, with most shifting to the next income group. Between FY11 and FY22, 13.6% of people moved from the lowest income strata of below Rs 5 lakh, with 8.1% added to the Rs 5-10 lakh group and 3.8% in the Rs 10-20 lakh bracket.

“We believe the positives of the migration through collaborative pitching of the idea of federalism and redistribution of efficient skilling far outweighs the loss in select states’ GSDP (plus, the remittance remuneration),” SBI economists said.