We are among the fastest growing economies in the world
Amidst the ongoing turmoil in the global economy, a relief news has come for India. The Organization for Economic Co-operation and Development (OECD), a group of developed countries in the world, has maintained India’s growth rate estimate at 6.7% for the financial year 2026. This simply means that despite all the global challenges, India will remain among the fastest growing major economies of the world. However, in this report, some concerns have also been expressed regarding the new policies of America, which may affect our exports.
We are among the fastest growing economies in the world
Paris-based organization OECD has clarified in its latest report that India’s economic foundation is strong. India’s GDP growth rate in the second quarter of FY 2026 was 8.2%, which is the highest in the last six quarters. In view of this, many economists have increased the estimates for the entire year to above 7%. OECD believes that India’s strength will remain due to three main reasons.
- Increasing income of people: When the real income of the common man increases, the expenditure in the market increases.
- Government expenditure: The money the government is spending on infrastructure and development works is increasing both employment and demand.
- Monetary Policy: Due to low inflation, there is a possibility of reduction in interest rates, which will make loans cheaper and investment will increase.
Will there be a brake on exports?
While on one hand the domestic economy is strong, on the other hand there is some concern on the foreign trade front. A big warning has been given in the report that the import duties increased by America will affect India.
America has increased duties on Indian goods and has imposed a total tariff of 50% including 25% penalty on the import of Russian oil. OECD estimates that due to higher US tariffs, India’s GDP growth may decline by about 0.4% in fiscal year 2025-26 and by 0.3% next year.
However, the report also says that these duties can be reduced through bilateral talks between India and America, which will provide relief to our exporters.
Common man will get relief
There is good news for the general public on the inflation front. Retail inflation had fallen to a record low of 0.25% in October. This has become possible due to falling prices of food items. OECD says that if inflation remains under control, the Reserve Bank of India (RBI) can cut interest rates. Interest rates may come down to 5% by the financial year 2026-27. This means that home and car loans may become cheaper in the coming times.
Apart from this, reforms in GST will also give impetus to the economy. From September 22, the GST Council has approved the two-slab structure of 5% and 18%, which has made many household items cheaper. According to the report, this reform will increase the efficiency of the economy and the growth rate may increase by 0.1%.