The recent increase of 11.2% in net direct tax receipts can have the following impact on the Indian economy:

• Boost to government coffers: Higher tax collections will lead to an increase in revenue for the government, allowing it to fund various development projects and social welfare schemes.
• Reduce government debt: The increased revenue will provide the government with extra cash to pay off debts, reducing the interest burden in the long run.
• Encouragement to taxpayers: The rise in revenue will encourage taxpayers to be more compliant in meeting their tax obligations, as they can see the contribution of taxes to the government's work.
• Increased market confidence: Higher tax collections indicate a well-functioning economy, which can increase investor confidence in the market, leading to higher investments and growth in the economy.
• Supports economic stability: Adequate and consistent tax revenues help ensure the stability of the economy, as fiscal stability is a crucial ingredient for economic development.

Overall, the increase in direct tax receipts can stimulate the Indian economy, promoting growth and development in the long term.