OECD Lifts India's FY27 GDP Growth Forecast by 80 Basis Points to 7.1%

Key facts

• The Organisation for Economic Co-operation and Development (OECD) raised India's FY27 GDP growth forecast by 80 basis points to 7.1%, up from 6.3% projected in June.
• In its September Interim Economic Outlook, the OECD projected India's growth to moderate from 7.8% in FY26 to 7.1% in FY27 and further to 6.5% in FY28.
• Fitch Ratings raised India's FY27 growth forecast to 6.9% from 6.4%, S&P Global Ratings projected 7% growth up from 6.6%, and Moody's had raised its forecast to 7% from 6% the previous week.
• The upgrades followed India reporting 7.8% GDP growth in the April-June quarter, with gross fixed capital formation growing 11.9%, manufacturing expanding 9.2%, private consumption growing 7.1%, and financial, real estate and professional services growing about 12.1%.
• India entered FY27 facing pressures including war in West Asia, crude prices above $100 a barrel, disrupted shipping routes, global trade uncertainty and the threat of higher US tariffs.