136 individuals earn more than Rs 100 crore, with a combined income of Rs 34,301 crore, up from 23 in FY14: SBI research report

In financial year 2013-14 (FY14), 23 individuals earned more than Rs 100 crore and had a combined income of Rs 29,290 crore. Cut to FY21, and the number of those earning more than Rs 100 crore increased to 136, though their combined income rose to Rs 34,301 crore, State Bank of India researchers said in a new report released Friday. 

This represents a dip in the share of these top income earners compared to all income earners. In FY14, the combined income of 23 individuals with income of more than Rs 100 crore was 1.64% of the total income of FY14. By FY21, though the number of such individuals increased, their share of their combined income in total income fell to 0.77%.  

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Income disparity  

The SBI report captured income disparity curves of assessment year 2014-15 (AY15)/FY14 and AY22/FY21. 

A comparison of disparity in income during FY14 and FY21 shows that there is a clear rightward shift in the income distribution curve, signifying people in lower income brackets are increasing their income to converge towards their share in the population. 

For people with income up to Rs 3.5 lakh, the income disparity has reduced from 31.8% in FY14 to 15.8% in FY21, signifying that the share of this income group in income compared to their population has increased by a sharp 16%. 

The report also highlights a shift in income tax dynamics among leading states like Maharashtra, Gujarat, Delhi, and Karnataka, which are traditionally dominant in the tax base. There are signs here of saturation with declining shares in the overall tax base. 

Conversely, Uttar Pradesh leads the surge, followed by Andhra Pradesh, Rajasthan, Punjab, Madhya Pradesh, and Haryana in expanding their contribution to the income tax base. 

Additionally, the report attributes this rise in income to increased affordability, driven by demographic shifts, a youthful population, easily accessible financing, readily available information, and evolving lifestyle choices, particularly in online marketplaces spanning from culinary preferences to fashion trends.