New Delhi, February 26 India's GDP could grow between 6.8-7.2 per cent in the next fiscal, according to an EY Economy Watch report released on Thursday.
The report suggested that to achieve the "Viksit Bharat" (Developed India) goal by 2047, India may need to increase its tax-GDP ratio, primarily through improved tax compliance, as major tax reforms have already been implemented.
"Given India's extensive bilateral trade agreements with other major economies or economic groups, India's medium-term prospects have brightened. We estimate India's real GDP growth to be in the range of 6.8-7.2 per cent in FY27," said EY India Chief Policy Advisor D K Srivastava.
The EY Economy Watch report stated that major tax reforms were undertaken in the current fiscal, particularly concerning personal income tax (PIT) and the Goods and Services Tax (GST).
Both reforms involved a significant loss of revenue aimed at increasing household disposable incomes, thereby supporting private consumption demand.
"These tax reforms involved a considerable sacrifice of the Government of India's Gross Tax Revenues (GTR), which were expected to fall short of the budget estimates for FY26. Despite this anticipated revenue shortfall, the GoI was widely expected to adhere to its budgeted fiscal deficit target for FY26," the report said.
