India’s economy is all set to take a new and strong flight in the coming times. According to the latest report of leading financial advisory firm EY Economy Watch, the country’s growth rate in fiscal year 2027 is estimated to be between 6.8 percent and 7.2 percent. This rapid economic growth directly means that new employment opportunities will be created in the country and the flow of cash in the market will increase. The biggest reasons behind this pace of the economy are the recent strict policy steps taken by the government and strong medium-term prospects. This progress will prove important in improving the financial condition of the common man.
Trade agreements changed the economic picture
The country’s economy is directly benefiting from the bilateral trade agreements being signed by India at the international level. DK Srivastava, Chief Policy Advisor, EY India, has clarified in this report that India’s trade network with other major economies and large economic groups has expanded significantly.
Thanks to these trade agreements, India’s development prospects have become quite bright. Along with this, the continuous structural reforms taking place in the country have completely reshaped the financial scenario. Due to these reforms and agreements, the Indian market is further strengthening its identity as a global power.
Impact of changes in tax structure on the general public
In the current financial year, the government has made many important changes in the structure of Personal Income Tax and Goods and Services Tax (GST). The main objective of these policy changes is to increase the disposable income of common families. When people have more money left in their hands, they will be able to spend more on their needs.
This increasing expenditure and demand is the main basis of economic growth of any country. However, due to this tax relief, the government has suffered a lot of loss in its revenue. The report estimates that the gross tax revenue targets set in the budget for fiscal year 2026 may not be fully achieved.
Target of developed India by 2047
The government has prepared a long-term vision of ‘Developed India 2047’. According to the report, to achieve this huge target, it is very important to continuously increase the tax-to-GDP ratio. Since the government has already implemented major tax reforms, the emphasis will now be on tightening tax compliance rather than new structural changes. Despite fears of revenue shortfall, market and economic analysts have full confidence in the government’s policies. He believes that the government will successfully meet its fiscal deficit target this year.