{"id":277227,"date":"2024-01-11T16:35:25","date_gmt":"2024-01-11T11:05:25","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=277227"},"modified":"2024-01-11T16:35:25","modified_gmt":"2024-01-11T11:05:25","slug":"sbi-report-on-income-inequality-in-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sbi-report-on-income-inequality-in-india\/","title":{"rendered":"SBI Report on Income inequality in India"},"content":{"rendered":"

Source-<\/strong>This post is based on the article “Income inequality shrinks, Mobility on the Rise : SBI Research Report<\/strong>” published in “PIB<\/strong>” on 8th January 2024.<\/p>\n

Why in the News?<\/h2>\n

According to SBI Research latest report, there has been a reduction in income inequality in India, signaling a favorable shift towards upward mobility and the expansion of the middle class.<\/p>\n

What are the findings of the report?<\/h2>\n

1) Increasing tax base-<\/strong> The report, citing CBDT data, notes a continuous expansion in the Income Tax base. The number of tax filers increased to 74 million in AY 2022-23 from 70 million in AY 2021-22.<\/p>\n

2) Decline in Gini Coefficient-<\/strong> Gini Coefficient(a measure of income inequality) has declined from 0.472 during Assessment Year 2014-15 to 0.402 for AY 2022-23.<\/p>\n

3) Share of Top earners declined –<\/strong> The share of top earners with incomes exceeding Rs 10 crores and Rs 100 crores has decreased from 2013-14 to 2020-21.<\/p>\n

4) Improving upward mobility –<\/strong> The drop in income inequality stems from significant upward mobility.\u00a0 More than 36% of individuals originally in the lowest income bracket in FY14 have transitioned to higher income levels. It led to a notable 21% increase in their earnings from FY14 to FY21.<\/p>\n

5) The report indicates rising female labour force participation<\/strong>.<\/p>\n

6) Evident shifts in income levels for MSMEs and evolving consumption patterns in the aftermath of the Covid-19 pandemic debunk the myth of K-shaped growth<\/a>.<\/p>\n

What is Gini coefficient?<\/h2>\n
\"Gini
Source- oercommons.org<\/figcaption><\/figure>\n

1) The Gini coefficient, derived from the Lorenz curve<\/a><\/strong>, serves as an indicator of income or wealth inequality.<\/p>\n

2) The coefficient ranges from 0 (0%) to 1 (100%), <\/strong>0 representing perfect equality (where every resident in a country has the same income) and 1 representing perfect inequality (one resident earned all income and the rest earned nothing). Higher the value of Gini coefficient, higher the inequality.<\/p>\n

UPSC Syllabus- Indian Economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source-This post is based on the article “Income inequality shrinks, Mobility on the Rise : SBI Research Report” published in “PIB” on 8th January 2024. Why in the News? According to SBI Research latest report, there has been a reduction in income inequality in India, signaling a favorable shift towards upward mobility and the expansion… Continue reading SBI Report on Income inequality in India<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,1305],"tags":[11872,3590],"class_list":["post-277227","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-index-reports-bodies","tag-9pm-daily-factly","tag-pib","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704953377},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/277227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=277227"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/277227\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=277227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=277227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=277227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}