On 3 September 2026, the Parliamentary Standing Committee on Finance released its latest review of direct‑tax reforms, revealing that India’s direct‑tax buoyancy remained above one for the third consecutive financial year. The buoyancy index for FY2024‑25 was recorded at 1.39, indicating that direct‑tax collections grew 39 percent faster than the nation’s nominal gross domestic product during the period.
Tax buoyancy is a standard fiscal gauge calculated by dividing the percentage growth in tax revenue by the percentage growth in nominal GDP. A reading above 1 signals that tax receipts are outpacing overall economic expansion, while a figure at 1 denotes parity and below 1 suggests lagging revenue. India’s buoyancy rose from 1.27 in FY2022‑23 to a peak of 1.48 in FY2023‑24 before moderating to 1.39 in FY2024‑25, still well above the growth‑neutral mark.
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The government attributed the sustained buoyancy to a combination of easier compliance mechanisms, an expanding tax base, and recent reforms in tax administration. Initiatives such as simplified filing procedures, broader coverage of high‑value transactions, and the rollout of advanced data‑analytics tools for detecting evasion have been cited as key drivers behind the stronger revenue response.
The Standing Committee on Finance, chaired by Bhartruhari Mahtab, noted that the buoyancy trend reflects both policy effectiveness and a resilient macroeconomic backdrop. While the slight dip from 1.48 to 1.39 suggests a modest slowdown, officials emphasized that the figure remains a robust indicator of fiscal health, reinforcing confidence among investors and policymakers ahead of the upcoming budget cycle.
