Washinton: India is expected to generate 6.7 per cent growth this year, up from 6.5% in 2024, the Organization for Economic Cooperation and Development said.
India’s economy is the fastest growing economy in the world. As per 38-country OECD’s projection, the country’s Real GDP is expected to grow by 6.7% in fiscal year 2025-26, 6.2% in 2026-27 and 6.4% in 2027-28.
“Higher tariffs applied by the United States are expected to weigh on exports, but private consumption will be supported by rising real incomes as inflation remains low and consumption taxes decline,” the OECD said.
OECD backed India’s growth, saying that the country’s Headline inflation declined to 0.3 per cent in October 2025, which was a result of GST 2.0 reforms, lower food prices, which constitute nearly half of the CPI basket, and lower energy costs.
“Core inflation remains around 4%. Good harvest outcomes have contributed to declining food prices, while lower crude oil prices have reduced energy costs, easing pressures on transport and industrial production,” it added.
World economy is forecast to grow 3.2% this year: OECD
The OECD in its latest report predicted that the world economy will grow 3.2 percent this year, down a tick from 3.3% in 2024 but an improvement on the 2.9% it had predicted for 2025 back in June. The US’ growth is expected to grow to 2%, up from the 1.6% it had forecast in June.
“The global economy has been resilient this year, despite concerns about a sharper slowdown in the wake of higher trade barriers and significant policy uncertainty,” OECD Secretary-General Mathias Cormann wrote in a commentary accompanying the forecasts. Still, he added: “We expect higher tariffs to gradually feed through to higher prices, reducing growth in household consumption and business investment.” The OECD expects China, the world’s No. 2 economy, to grow 5% this year, same as in 2024. It sees the 20 economies that share the euro currency collectively expanding 1.3% in 2025, lackluster but up from 0.8% in 2024.