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OECD Lowers India Growth to 6.3% in FY26, Projects Global Slowdown
Mint Hyderabad
|June 04, 2025
The Organisation for Economic Co-operation and Development (OECD) on Tuesday lowered India's GDP growth rate a notch, as it projected global growth to slow down more than expected on account of Trump tariffs.
The Paris-based OECD in its June Economic Outlook lowered India's growth rate to 6.3% in FY26 and 6.4% in FY27, compared with earlier projections, made in March, of 6.4% for FY26 and 6.6% for FY27.
It projected global growth to slow to 2.9% in 2025 and 2026 from 3.3% in 2024, trimming its estimates from March. It said the US economy would grow only 1.6% in 2025 and 1.5% in 2026, citing US President Donald Trump's tariff announcements.
While private consumption in India is set to strengthen gradually, supported by rising real incomes, moderate inflation, tax cuts, and an improving labour market, investments will be buoyed by falling interest rates and strong public capital expenditure, the OECD report said.
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