Organisation for Economic Cooperation and Development (OECD) Projects India GDP Growth at 6.3% for FY27 and 6.4% for FY28

Key facts

• The Organisation for Economic Cooperation and Development (OECD) projects India to register a growth of 6.3 per cent in 2026-27 (FY27) and 6.4 per cent in 2027-28 (FY28).
• China's economic growth is projected by the OECD to ease from 5.0 per cent in 2025 to 4.5 per cent in 2026 and 4.3 per cent in 2027 due to energy vulnerabilities and real estate adjustments.
• The Reserve Bank of India (RBI) reduced the monetary policy rate from 6.5 per cent in January 2025 to 5.25 per cent in February 2026, while non-food bank credit expanded by 15.9 per cent year-on-year in March.
• A temporary increase of approximately 25 basis points in the policy rate is projected by the end of the first quarter of FY2026-27 to maintain inflation within the 4 per cent target band.
• India's fiscal deficit is expected to widen by 0.4 per cent of GDP relative to the budgeted 4.3 per cent for FY2026-27, with public debt projected to reach 54.7 per cent in FY2027-28.