OECD becomes latest global agency to upgrade India’s growth, up 2026-27 expansion to 7.1%
The OECD has raised its 2026-27 growth forecast for India to 7.1%, citing resilient domestic demand and government policy. While growth remains strong, the agency warns of a potential slowdown in the second half of the fiscal year due to reduced purchasing power.
Why it matters
India's economic trajectory is a key indicator for emerging markets, and these forecasts influence global investor sentiment.
The Organisation for Economic Co-operation and Development (OECD) has become the latest global body to raise its growth forecast for India in the last week, predicting that India’s economy will grow by 7.1% in 2026-27, up from 6.3% forecast in June. It did, however, say that growth in the second half of the year is expected to slow.
This comes soon after the three most-recognised global ratings agencies — Moody’s, S&P Global, and Fitch Ratings — raised their respective growth outlooks for India over the last week.
The OECD, in its Economic Outlook Interim Report September 2026 released on Wednesday, said that several countries have been able to mitigate the damage from the West Asia crisis by rapid growth in artificial intelligence-related investment and production in many economies.
For India, however, it said domestic demand and government policy cushioned the impact.
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