India's economic landscape is undergoing a significant transformation, fuelled by a surge in high-income earners and a rising female workforce. India's female labour force participation has risen from 23.3% in 2017-18 to 41.7% in 2023-24, while the number of taxpayers earning over Rs 1 crore has surged five-fold to over 220,000.

According to SBI Research, the growth rate of personal income tax (PIT) collections has outpaced corporate tax (CIT) collections since FY21, with PIT increasing by 6% compared to CIT's 3%.

The number of income tax returns filed in AY24 soared to 8.6 crore, a substantial increase from 7.3 crore in AY22.

Concurrently, female labour force participation has witnessed a surge, rising from 23.3% in 2017-18 to 41.7% in 2023-24, with states like Jharkhand, Odisha, Uttarakhand, Bihar, and Gujarat leading the way.

The surge in Crorepati taxpayers 

In Assessment Year 2024, the number of taxpayers earning over INR 1 crore reached a staggering 2.2 lakh, a five-fold increase from just 0.4 lakh a decade ago.

 This growth signals the rise of a substantial affluent class that is contributing to broader economic shifts, where industries like technology, entrepreneurship, and finance are creating new wealth.

The rise of women in the workforce 

Parallel to the rise of high-income earners, India has witnessed a significant surge in female labour force participation. From a modest 23.3% in 2017-18, the rate has soared to 41.7% in 2023-24, driven by states like Jharkhand, Odisha, and Gujarat.

The share of women engaged in agriculture has also increased, from 57% in 2017-18 to 64.4% in 2023-24, as per the SBI report.

Women are breaking barriers and entering sectors traditionally dominated by men, such as technology, education, and agribusiness. This not only empowers women but also enriches these sectors with diverse perspectives and skills.

Declining income disparity 

One of the most promising trends is the decline in income disparity. The Gini coefficient, a measure of income inequality, has decreased significantly from 0.489 in AY13 to 0.460 in AY24.

Approximately 43.6% of taxpayers who were in the lowest income bracket (under INR 4 lakh) in AY15 have transitioned to higher income brackets by AY24. 

Lastly, fewer people are filing late returns, indicating a positive shift towards greater compliance and discipline.