India’s GDP Seen At 6.8–7.2% In FY27 Amid Stronger Medium-Term Outlook: EY India

New Delhi, Feb 27 (KNN) India’s economy is projected to grow between 6.8 percent and 7.2 percent in FY27, supported by stronger medium-term prospects and recent policy measures, according to the latest Economy Watch report released by EY India.

The report noted that India’s expanding network of bilateral trade agreements with major economies and economic blocs has improved its growth trajectory, even as structural reforms continue to reshape the fiscal landscape, reported The Economic Times.

D K Srivastava, Chief Policy Advisor, EY India, said that in the backdrop of these extensive trade engagements, India’s medium-term outlook has brightened considerably.

Fiscal Reforms and Viksit Bharat Vision

The analysis underlined that achieving the government’s long-term Viksit Bharat 2047 vision would require a sustained increase in the tax-to-GDP ratio. This, it said, would need to be driven largely by improved compliance rather than fresh structural tax reforms, as most major reforms have already been undertaken.

During the current fiscal year, significant policy changes were introduced, particularly in personal income tax and the Goods and Services Tax (GST) framework. 

These measures involved substantial revenue foregone by the government with the aim of enhancing household disposable incomes and stimulating private consumption, which remains a key driver of economic growth.

Fiscal Deficit Target in Focus

As a consequence of these tax measures, gross tax revenues are expected to fall short of the FY26 Budget estimates. However, despite the anticipated revenue gap, the report said markets and analysts broadly expect the government to adhere to its fiscal deficit target for the year, reflecting confidence in fiscal discipline and effective revenue management.

(KNN Bureau)