New Delhi, Feb 27 (UNI) India’s Gross Domestic Product (GDP) is likely to grow between 6.8-7.2 per cent in the next fiscal, said a report by EY Economy Watch.
In order to attain the Viksit Bharat goal by 2047, India may have to increase its tax-GDP ratio largely by improving tax compliance as major tax reforms have already taken place, it suggested.
The report said that major tax reforms were undertaken in the current fiscal year, in particular relating to personal income tax and the GST.
EY India Chief Policy Advisor D K Srivastava said, “In the background of India’s extensive bilateral trade agreements with other major economies or economic groups, India’s medium-term prospects have brightened up. We estimate India’s real GDP growth to be in the range of 6.8-7.2 per cent in FY27.”
Both these reforms involved a considerable amount of revenue forgone aimed at increasing household disposable incomes so that private consumption demand could be supported.
The report further stated that these tax reforms involved considerable sacrifice of the GoI’s Gross Tax Revenues (GTR), which were expected to fall short of the budget estimates for FY26. In spite of the apprehension of this revenue shortfall, the GoI was widely expected to adhere to its budgeted fiscal deficit target for FY26.
Recently, the UBS India Composite Economic Indicator report had also said that the economic momentum in India picked up sequentially during the December quarter, supported by festive season demand and the impact of GST rate cuts.
Early data for January 2026 suggests that this robust momentum has continued into the new year. The analysis indicates that the Indian economy is currently maintaining a stable position characterised by strong domestic demand and well-contained macro stability risks, it said.
