India needs 1.2-1.5 tax buoyancy to achieve 6.5-7pc growth: EY

India needs to maintain a tax buoyancy of 1.2-1.5 to achieve 6.5-7% growth, according to an EY report. The government should increase the tax-to-GDP ratio from 12% in FY26 to 14% by FY31, focusing on enhancing tax buoyancy and prudent expenditure management for sustainable growth. The fiscal deficit is expected to reduce to 4.4% by FY26.