The Organisation for Economic Cooperation and Development (OECD) has raised India’s GDP growth forecast by 40 basis points (bps) to 6.7 per cent in 2025 from its earlier projection of 6.3 per cent in June.
The OECD’s latest ‘World Economic Outlook’ stated that overall activity is anticipated to be supported by monetary and fiscal policy easing and robust GST reforms. However it also said that higher tariff rates will weigh on the country’s export sector.
According to the report, the food price inflation has declined sharply in India, helped by strong domestic supply and export restrictions. The OECD has sharply cut its financial year 2026 consumer price index (CPI) inflation projection by 120 bps to 2.9 per cent.
The report also noted that global growth proved more resilient than expected in the first half of 2025, especially in many emerging markets.The OECD raised its growth forecast for the global economy to 3.2 per cent for this year but kept its 2026 forecast steady at 2.9 per cent, adding that it expects global trade uncertainties sparked by US tariffs will likely contract investment and trade in the second half of 2025.
