Politics · India Bureau
OECD upgrades India growth forecast to 7.1% on resilient demand
The Organisation for Economic Co-operation and Development has raised its GDP growth projection for India's current fiscal year by 80 basis points, citing strong domestic demand and supportive government policies. The Paris-based body now expects the Indian economy to expand at 7.1 per cent, up from its June forecast of 6.3 per cent.
LSN India ·
The OECD's upgraded assessment reflects confidence in India's economic momentum, driven by persistent consumer and business spending alongside government measures that have shielded households and enterprises from elevated energy costs. The revision comes as the multilateral organisation released its latest Interim Economic Outlook, which tracks growth prospects across major economies including emerging markets.
India stands among several G20 emerging economies where robust domestic demand has underpinned economic activity despite global headwinds. The organisation noted that structural policy reforms aimed at building resilience to supply-side disruptions have become increasingly important for governments navigating current economic challenges.
However, the OECD cautioned that growth momentum may face headwinds in the latter half of the fiscal year. Softer purchasing power is anticipated to moderate expansion as the year progresses, potentially tempering the pace of economic activity. The organisation's outlook suggests policymakers will need to balance near-term support with longer-term structural adjustments to sustain growth trajectories.