OECD raises India's FY26 growth forecast to 6.7%

Business Sep 23, 2025

Good news for India's economy: the OECD now expects India to grow by 6.7% in FY2026, a bit higher than before.
This boost comes from looser monetary policies and GST reforms, which are anticipated to support overall economic activity.
Still, higher tariffs could make things tough for exports.

Inflation expected to drop

Looking ahead, the OECD trimmed India's FY2027 growth forecast to 6.2%.
On the bright side, inflation is set to cool down—averaging just 2.9% in FY2026 compared to earlier predictions of over 4%.
Globally, growth is slowing down too: China's expected at 4.9%, and the US at 1.8%, as economies everywhere adjust to ongoing challenges.