OECD Affirms 6.7% GDP Growth Rate for India in FY26

The Organisation for Economic Co-operation and Development (OECD) has kept India’s economic outlook unchanged at 6.7% for FY26.  

The forecast highlights steady domestic demand, continued public investment and expectations of improving household purchasing power as the main drivers of growth. 

Key Development: Drivers Behind OECD’s Forecast 

OECD noted that India’s growth will continue to be underpinned by consumption and investment momentum. Rising real incomes, a possible softening of monetary policy and ongoing government capital expenditure are expected to support economic activity.  

The assessment also mentioned that global factors such as higher tariffs by major economies and weaker export demand may pose risks, but India’s strong domestic fundamentals are likely to cushion these pressures. 

Statements and Medium-Term Outlook 

In its multi-year projection, OECD expects real GDP growth of 6.7% in FY26, followed by 6.2% in FY27 and 6.4% in FY28.  

The report stated that policy stability, reform measures and improving private sector sentiment will help sustain medium term growth even as global conditions fluctuate. 

Read More: India Reaches 31.2 GW Non-Fossil Capacity in FY25-26 Till October 2025! 

Conclusion 

The decision to retain India’s FY26 growth view at 6.7% reflects continued confidence in the country’s economic resilience. With support from rising incomes, favourable policy conditions and strong public investment, India is expected to remain one of the fastest growing major economies, despite an uncertain global environment. 

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