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This surge is anticipated to boost the share of the taxable workforce to an impressive 85.3%, a stark rise from the current 22.4%.
NEW DELHI: India’s per capita income is expected to shoot up from current ₹2 lakhs per annum to nearly ₹15 lakhs in 2047 when the country celebrates 100 years of its independence.
In the paper, SBI Research said that economic reforms undertaken by the Modi government have helped script the “great” growth story of the Indian middle class, which is expected to propel the country into a middle income economy.
India’s weighted mean income, which has surged from ₹4.4 lakhs in 2014, when Prime Minister Narendra Modi assumed office, to ₹13 lakhs in 2023. This ascent is projected to culminate in a remarkable ₹49.7 lakhs by the year 2047. The research attributes this unprecedented achievement to a shift in the distribution of tax-filers from the lower income bracket to the upper income segment.
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It also said that the present tax regime has ushered in a robust and upwardly mobile “Middle Income Class.” The threshold middle-class income is also set to touch ₹50 lakhs in 2047.
The study titled “Deciphering emerging Trends in ITR Filing: The Ascent of the new Middle Class in circular migration” also said that the ongoing reforms and confidence-building measures have contributed to the expansion of the tax-filer base, with a projected increase to approximately 482 million in the fiscal year 2047, up from around 70 million in 2023.
This surge is anticipated to boost the share of the taxable workforce eligible to pay taxes to an impressive 85.3 per cent, a stark rise from the current 22.4 per cent.
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It is estimated that 25 per cent of income tax filers will ascend from the lowest income strata by the fiscal year 2047, a substantial increase from 13.6 per between 2012-2023.
“Enabling ITR filing in multiple languages and ingraining AI led assistance could push the architecture to the door-step of many,” SBI Research suggested.
“Circulatory migration/skilled workforce upgrading to better opportunities/transitioning to a higher income bucket as the Indian diaspora finds the promises of the new Indian economy lucrative enough to collaborate in innovative ways in tandem with inter-state migration needs to be better captured in ITR returns to enable better framing of policy narratives,” it said.
