The latest report from the State Bank of India (SBI) reveals a steady decline in the Gini coefficient, a key indicator of income inequality, indicating progress toward a more balanced income distribution. Using Income-Tax Returns (ITR) data, the report shows a decrease in the Gini coefficient from 0.489 in Assessment Year (AY) 2013 to 0.460 in AY 2024. Projections for AY 2025 suggest further reduction to 0.441, reflecting continued improvement in income equity across the population. Additionally, the report highlights upward income mobility, with 43.6% of lower-income earners in AY 2015 advancing to higher income brackets.
In detail, 15.1% of individuals earning under Rs 4 lakh moved to the Rs 4-5 lakh range, while 18.7% transitioned to the Rs 5-10 lakh bracket. Other percentages achieved higher income categories, including 1.8% moving into the Rs 50 lakh to Rs 1 crore range. Lower-income individuals also showed notable increases, with 26.1% of gross income gains occurring among those initially in the lowest income tier. Moreover, the share of income for those earning up to Rs 3.5 lakh dropped from 31.8% in FY 2014 to 12.8% in FY 2021, reflecting growth in middle and higher-income segments.
The SBI report also underscores a substantial rise in female labor force participation, based on data from the Periodic Labour Force Survey (PLFS). Female participation rose significantly, from 23.3% in 2017-18 to 41.7% in 2023-24, marking an 18.4% increase. This boost was most evident in states such as Jharkhand, Odisha, Uttarakhand, Bihar, and Gujarat, signaling meaningful strides in gender inclusion within the workforce.
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