OECD sticks with India's strong growth forecast for FY26
The OECD just confirmed that India is set to grow 6.7% in fiscal year 2026—one of the fastest-growing major economies.
This upbeat outlook is thanks to higher real incomes, easier borrowing, and big government spending.
There's a small catch though: new US tariffs could slow export growth a bit.
What's shaping the numbers?
US tariffs are expected to trim GDP growth due to weaker export growth by about 0.4% in FY26 and 0.3% in FY27, but ongoing trade talks might soften the blow and could bolster manufacturing exports.
A planned GST revamp in September 2025 could give growth a tiny extra push, while low inflation means the Reserve Bank of India might cut rates again soon.
Looking ahead
Growth is predicted to dip slightly—to 6.2% in FY27 and then up to 6.4% in FY28—as India faces hurdles like infrastructure gaps and limited ties to global supply chains.
The takeaway? For India to keep its momentum, it needs fresh reforms in trade, education, and infrastructure.