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The primary objective of any country is the overall growth and development of a country. The government should focus on the welfare and developmental activities which requires finance. Tax is considered a major source of revenue for a government. Therefore, the development of a country is related to the tax revenue generated. This paper examines the direct tax and indirect tax revenue collected in India. The main objective of this paper is to analyse the comparative study of direct tax revenue and indirect tax revenue in India and also suggest certain measures to increase the same. The study covered twelve years period from financial year 2000-2001 to 2011-2012 This research is based on secondary data collected from various newspapers, books, research papers, Union Budget and Economic Survey, Ministry of Finance and other websites and other published resources. The researcher has used various tools for analysis like average, Simple percentage technique and diagram presentation. Data have been represented in tabular forms and line charts. The present study is also to attempts the role of direct and indirect tax in development of Indian economy. The study clearly shows that taxes plays an important role in Indian economy development. The researcher concluded that there has been increase in the tax revenue but still there are certain inadequacies which need to be improved.