OECD Raises India’s FY26 GDP Growth Forecast to 6.7% in September 2025 Economic Outlook Report.

In September 2025, the Organisation for Economic Cooperation and Development (OECD) released its Economic Outlook, Interim Report titled “Finding the Right Balance in Uncertain Times: September 2025.” The report revised India’s Gross Domestic Product (GDP) growth forecast upward for FY26 while highlighting inflation trends and global economic projections.

      - OECD raised India’s GDP growth forecast for FY26 by 40 basis points (bps), from 6.3% to 6.7%, supported by monetary and fiscal policy easing and robust Goods and Services Tax (GST) reforms.

      - The report revised India’s GDP growth forecast for FY27 downward by 20 bps, reducing it from 6.4% to 6.2%, reflecting moderated expectations for medium-term growth.

      - India’s Consumer Price Index (CPI) inflation for FY26 is expected to decline by 120 bps, from 4.1% to 2.9%, driven by strong domestic supply and export restrictions. The inflation outlook for FY27 remains unchanged at 2.9%.

Main Point :-   (i) OECD revised the global growth forecast for Calendar Year 2025 (CY25) upward by 30 bps, from 2.9% to 3.2%. However, for CY26, the global growth forecast remains at 2.9%, due to trade uncertainties and tariff impacts led by the United States of America (USA).

      (ii) The report projects global headline inflation at 3.4% in CY25 (down from 3.6%) and 2.9% in CY26. Core inflation in advanced G20 economies is expected to remain stable at 2.6% in CY25 and 2.5% in CY26.

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