India's per capita income is projected to increase 7.5-fold to Rs 14.9 lakh ($12,400) per year by FY47, from Rs 2 lakh ($2,500) per year in FY23, according to a study released Tuesday by SBI Research economists.
The government has designated the year 47 as the target for becoming a developed economy. In his final Independence Day address before the 2024 general elections, Prime Minister Narendra Modi stated that the next five years are crucial for India to achieve its 2047 objective.
Prime Minister Narendra Modi stated, "A developed India by 2047 is not just a dream, but the aspiration of 140 billion Indians."
According to the SBI study, the weighted mean income of tax filers will increase to Rs 49.9 lakh in FY47 from Rs 13 lakh in FY22 as a result of the economy's transition from a lower-income group to an upper-income group and tax buoyancy. It was also noted that a rise in formalisation as a result of the Goods and Services Tax and the UDYAM portal for MSMEs was driving income tax returns.
In FY23, the number of tax filers increased from 2.1 million in FY13 to 85 million. According to SBI economists, the number is projected to rise to 482 million by FY47, increasing the proportion of taxable workers to 85.3% from 22.4% in FY23.
It was projected that the number of individuals filing zero tax returns would decrease by an additional 25% by FY47, with the majority migrating to the next income group.
Between FY11 and FY22, 13.6% of individuals moved from the lowest income bracket of less than Rs 5 lakh, with 8.1% joining the Rs 5-10 lakh group and 3.5% joining the Rs 10-20 lakh group.
The study also lauded the advantages of migration, noting that migration contributed 0.5-2.5% of GSDP in individual states, with six states experiencing net positive migration.
SBI economists stated, "We believe the benefits of migration through collaborative pitching of the concept of federalism and redistribution of efficient skilling far outweigh the loss in select states' GSDP (plus remittance compensation)."
To comprehend the benefits of migration, the study recommended that the place of employment be reported as a separate category on income tax returns.
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