An EY economy watch report anticipates the 2026-27 Union Budget will support India's growth by boosting domestic demand, aligning with the RBI's growth-oriented monetary policy. Despite risks to tax buoyancy, the report projects fiscal support, capital spending, and reforms to sustain expansion, with private investment revival and easing global uncertainty as key factors. India's economy is expected to maintain a medium-term growth trajectory around 6.5%, with recent quarters showing robust performance.