Key Points
The financial firm underscored that the patterns seen in income, savings, consumption, expenditure, and policies question the reliability of using outdated indicators like low two-wheeler sales or fragmented land holdings to paint a negative picture of India's performance..
"The oft-repeated conundrum debating a K-shaped recovery post-pandemic seems at best flawed, prejudiced, ill-concocted and fanning interests of select quarters to whom Indias remarkable ascendance, signalling more the renaissance of the new global south, is quite unpalatable," said the SBI report..
"The patterns emanating from income, savings, consumption, expenditure and policy measures question the efficacy of using ages-old proxies like low two-wheeler sales or fragmented land holdings to support some pre-destined narratives of India not doing well," SBI stated..
"The decline in income inequality is because of a great migration at the bottom of the pyramid; 36.3 per cent of individual ITR filers belonging to the lowest income in FY14 have left the lowest income group and shifted upwards resulting in 21.1 per cent more income for such individuals during FY14-FY21," said the SBI report..
The SBI report highlighted the visible change in the income pattern of MSMEs (micro, small and medium enterprises) as the formalisation drive brings more entities into the net. . "Around 19.5 per cent of majorly micro-sized firms have been able to shift their income upwards..
