Direct tax buoyancy above one for third financial year
India’s direct tax buoyancy stood at 1.39 in 2024-25, remaining above one for the third straight year as tax collections grew faster than nominal GDP.
In the 2024-25 fiscal year, direct tax buoyancy in India remained above one for the third consecutive year, reaching 1.39, according to government data presented to a parliamentary committee. This metric indicates that direct tax collections grew faster than nominal GDP. Direct tax buoyancy is calculated by comparing the growth in tax revenues to the growth in GDP, and a value greater than one signifies that tax revenue is expanding at a faster pace than the overall economy.
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