OECD Raises India's Economic Growth Forecast to 7.1% for FY27

The Organisation for Economic Cooperation and Development (OECD) raised its 2026 (FY27) economic growth forecast for India to 7.1 per cent, an increase of 80 basis points from the previous projection of 6.3 per cent. The outlook also projected India's 2027 (FY28) GDP growth at 6.5 per cent. This growth was attributed to resilient domestic demand and government policies that helped cushion households and firms from higher energy prices.

The OECD report noted that reduced purchasing power is expected to slow growth in India during the second half of the year. Furthermore, the organization stated that India is projected to raise policy rates temporarily to help offset stronger inflationary pressures, which are expected to fall from 4.7 per cent in 2026 to 4.2 per cent in 2027.