Organisation for Economic Co-operation and Development (OECD) lowers India’s FY27 GDP growth forecast to 6.1%

Key facts

• Organisation for Economic Co-operation and Development (OECD) reduced India’s FY27 growth forecast to 6.1% from 6.2%.
• India’s FY28 growth projection remains unchanged at 6.4%.
• India’s GDP is officially estimated to grow 7.6% in FY26.
• India will remain the fastest-growing economy ahead of China (4.4%), United States (2%), Japan (0.9%), and United Kingdom (0.7%).
• Global growth outlook for 2026 stays at 2.9%; 2027 revised down to 3% from 3.1%.
• OECD expects India’s inflation to rise sharply to 5.1% in FY27 from 2% in FY26.
• Retail inflation in India rose to 3.21% year-on-year in February from 2.74% in January.
• OECD projects India to temporarily raise policy rates in Q2 2026.
• Reserve Bank of India (RBI) kept the repo rate steady at 5.25% in February.