OECD Updates India's GDP Growth Estimate to 6.4% for FY 2024-25.
Economy Business
On March 17, 2025, the Organisation for Economic Co-operation and Development (OECD), based in Paris (France), updated its Gross Domestic Product (GDP) growth forecast for India for the Financial Year 2024-25 (FY25) to 6.4%, a slight increase from 6.3% in FY24.
- This is a small rise, but still 0.50% lower than the previous estimate made in December 2024. Despite the slight reduction, India remains the fastest-growing major economy in the coming years.
- The OECD has revised its global economic projections, lowering the 2025 global GDP growth forecast from 3.3% to 3.1%, primarily due to trade barriers and geopolitical uncertainties. Despite a slight downward revision, India’s growth projection for FY26 remains strong at 6.6%, while growth in the Euro area is expected to be 1.0% in 2025 and 1.2% in 2026, amidst increased uncertainty.
- The economic slowdown is primarily attributed to weaker-than-expected growth in industrial sectors, while the services and agriculture sectors continue to show positive growth, with industrial growth expected to remain slow and the services sector continuing to drive overall growth.
Main Point :- (i) The OECD forecasts a gradual decrease in interest rates in India, to keep inflation under control.
(ii) For FY27, the OECD predicts inflation will fall to 4.1%.
(iii) The OECD pointed out that trade restrictions and geopolitical tensions are increasing costs for both production and consumption.
About Organisation for Economic Co-operation and Development (OECD)
Secretary-General (SG): Mathias Cormann
Headquarters: Paris, France
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