India's GDP Projected to Grow 6.8-7.2% in FY27 Amid Tax Reforms and Trade Expansion

India's GDP is projected to grow between 6.8% and 7.2% in fiscal year 2027, supported by expanding bilateral trade agreements and recent tax reforms, according to the EY Economy Watch report. The reforms, particularly in personal income tax and GST, involved significant revenue forgone to boost household incomes and private consumption. Despite expected shortfalls in gross tax revenues for FY26, the government is anticipated to maintain its fiscal deficit target. Achieving the Viksit Bharat 2047 vision will require improved tax compliance rather than new structural reforms.