India’s economy is set for strong growth, with projections between 6.8% and 7.2% for FY27. This expansion is fueled by expanding trade agreements and recent policy changes. These measures aim to boost household incomes and private consumption. Despite some revenue foregone, fiscal discipline is expected to be maintained. The nation is on a path to achieve its long-term development goals.
India’s economy is projected to expand between 6.8% and 7.2% in FY27, supported by stronger medium-term prospects and recent policy measures, according to the latest EY Economy Watch report.
The report said India’s expanding network of bilateral trade agreements with major economies has improved its growth trajectory, even as structural reforms continue to reshape the fiscal landscape. “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,” said D K Srivastava, Chief Policy Advisor at EY India, while outlining the firm’s growth estimate.
The analysis noted that achieving the government’s long-term Viksit Bharat 2047 vision would require a sustained rise in the tax-to-GDP ratio, primarily through stronger compliance rather than fresh structural overhauls, since most major tax reforms have already been implemented.
