New Delhi: India’s GDP is expected to grow between 6.8-7.2 per cent in 2026-27, EY Economy Watch report said on Thursday. The report suggested that may have to increase its tax-GDP ratio largely by improvement of tax compliance to achieve the aim of Viksit Bharat.
“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,” EY India Chief Policy Advisor D K Srivastava said.
The EY Economy Watch highlighted that the government announced major tax reforms in 2025-26, such as personal income tax (PIT) and the GST.
“These tax reforms involved considerable sacrifice of 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,” the report said.
India’s GDP expected to register over 8% growth in Oct-Dec: Report
The recent State Bank of India’s Economic Research Department projected Indian economy to post a growth rate closer to 8.1 per cent in the third quarter of 2025-26 under the revised series with the new base year of 2022-23.
“High-frequency activity data indicates resilient economic activity in 3QFY26. Rural consumption remains strong, driven by positive signals from farm and non-farm activity. Supported by fiscal stimulus, urban consumption shows a consistent uptick since the last festive season,” a report from State Bank of India’s Economic Research Department said.
“Overall, we expect Q3FY26 real GDP growth of closer to 8.1 per cent. Given significant methodological changes, it is difficult to predict the direction of revision,” it said.
With PTI inputs
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