Income Inequality Trends in India Post-Pandemic

This report presents an analysis of income inequality in India, focusing on the Gini coefficient derived from individual income tax returns filed between FY14 and FY22. The Gini coefficient has shown a significant decline from 0.472 to 0.402, indicating a reduction in income inequality. The report highlights that 36.3% of taxpayers from the lowest income group have transitioned to higher income brackets, resulting in a 21.1% increase in their overall income. Additionally, the study notes that 19.5% of small firms have grown into larger entities, reflecting a shift in the economic landscape. The report also discusses the changing consumption patterns post-pandemic, particularly in semi-urban areas, where food delivery services have seen increased usage. Furthermore, it mentions the rise in female labor force participation and the growing share of female taxpayers. The findings suggest a broader economic transition, challenging previous narratives of stagnation in income growth.