SBI Recent Economic Research talks about the K-shaped recovery which was opted at the time of the pandemic. Before we move forward let us understand what is K-SHAPED Recovery –After the economy of the country faces a Recession the government opts for one of the measures to recover from that recession and increase the growth rate. One such measure is called K-shaped recovery, In which the situation where one sector performs better on the growth scale and the other one suffers slowdown persists for a longer period.
The key Findings from the SBI Research Report
1. Income inequality –
The Gini index has declined from 0.472 to 0.402 between FY14 and FY22. The overall income increased for 21.3% resulted in a remarkable 36.3% of taxpayers moving up to income tax brackets.
2. MSME Growth Rate-
19.5% of MSMEs became a part of the larger value chains. There small businesses were seen collaborating and growing in recent times.
2. Consumption Changes-
The pandemic impacted and there was a whopping increase of Rs 8.2 trillion seen in the expenditure of 90% of the people. The Zomato delivery services boomed with around 20 million members from small towns, as active user. The consumption changes, 61% of the private consumption expenditure at Rs 100 lakh crore was contributed by 8.5% of the population.
3. Women’s work results –
The working class saw 23.3% to 37.0% of women joining the workforce from 2017 – 2023. The number of tax filers is increased up to 15% as no. of female taxpayers has increased. The states experiencing the highest percentage of women tax contributors are Kerala, Tamil Nadu, Punjab, and West Bengal.
4. Increase in Average Income-
There is an increase in average income per person from Rs 3.1 lakhs in 2012 to Rs 11.6 lakhs in 2021.
5. Role of Zomato in employment equality-
The market share of Zomato exceeded 50% and is playing a very significant role in reducing inequality. Two crore families have been using the Zomato services from the urban cities.
6. Two-Wheeler Sales-
A major shift, with an increase in preference for cars the two-wheelers’ markets suffered a decline in sales.
7. Comparison between Financial and Physical Assets-
In 2023 beginning, people changed their wealth-creating preferences and shifted towards financial assets from physical assets which also eventually contributed to a decrease in inequality.
8. Apple’s success-
Middle Class were seen increasing their affordability for the expensive Apple products. In the evolving lifestyle, people opted for financing measures to create wealth which helped them increase their income.
The SBI Research through its report suggested that the economic landscape of the country is moving towards positive transformation. The research included improved income, increased MSME growth through collaborative decisions, and new consumer behavior.