NEW DELHI: The Gini coefficient, a statistical measure of income inequality, has shown a consistent decline in the country over the years, according to the latest SBI report.
The report, which analysed the Income-Tax Returns (ITR) data, said that the Gini coefficient decreased to 0.489 from the Assessment Year 2013 (Fiscal Year 2012) to 0.460 in AY 2024 (Fiscal Year 2023).
The projections for AY 2025 suggest an even further reduction to 0.441, indicating a trend towards more equitable income distribution among individuals, shows SBI report. It also notes upward income mobility among lower-income taxpayers. In AY 2015 (Fiscal Year 2014), 43.6% of ITR filers earning under Rs 4 lakh moved to higher income brackets.
Specifically, 15.1% transitioned to the Rs 4-5 lakh range, 18.7% progressed to Rs 5-10 lakh, while smaller percentages advanced to the Rs 10-20 lakh and Rs 20-50 lakh groups.
Notably, 1.8% of filers even reached the Rs 50 lakh to Rs 1 crore category. Overall, 26.1% of gross income from the lowest income group showed significant increases, with many individuals breaking through the Rs 4-5 lakh and Rs 5-10 lakh thresholds.
As per the report, individuals earning up to Rs 3.5 lakh saw their income share decline from 31.8% in Fiscal Year 2014 to just 12.8% in Fiscal Year 2021, suggesting a more robust income growth in higher brackets. The lower income group, specifically those earning less than Rs 5.5 lakh, has demonstrated a positive growth rate over the past decade, with the sole exception of AY 2020, which was impacted by the COVID-19 pandemic.
In addition to the income trends, the SBI report highlights a significant increase in female labour force participation. According to the Periodic Labour Force Survey (PLFS), female participation rose from 23.3% in 2017-18 to an impressive 41.7% in 2023-24, marking an increase of 18.4%. The most substantial gains in female participation were observed in states such as Jharkhand, followed closely by Odisha, Uttarakhand, Bihar, and Gujarat.