OECD raises India's FY27 GDP growth forecast by 80 bps to 7.1%
- IBEF
- September 24, 2026
The Organisation for Economic Cooperation and Development (OECD) raised its 2026 (FY27) economic growth forecast for India to 7.1%, an 80 basis points increase from its June projection of 6.3%, citing resilient domestic demand and government policies that cushioned households and firms from higher energy prices. The OECD also raised India's 2027 (FY28) GDP growth projection to 6.5% from the earlier 6.4%, though it noted that reduced purchasing power is expected to weaken growth in India through the second half of the year before a gradual recovery in 2027. Headline inflation in India is projected to fall from 4.7% in 2026 to 4.2% in 2027, with the OECD noting that India is projected to temporarily raise policy rates to help offset stronger inflationary pressures, while government price support measures continue to mitigate energy price pressures in the near term.
OECD Secretary-General Mr. Mathias Cormann said global growth has held up better than expected, but buffers absorbing the energy shock are being depleted, with growth weaker than last year and inflation rising again, adding that governments need to target support where needed, sustain public spending and build long-term growth foundations through stronger skills, diversified energy supplies and faster AI adoption. The Outlook projects global growth of 2.9% in 2026 and 3.0% in 2027, with the evolving Middle East conflict posing considerable risks to these projections. US GDP growth is projected at 2.2% in 2026, easing to 2.1% in 2027, euro area growth at 1% in both years, and China's growth at 4.5% in 2026 and 4.2% in 2027.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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