The Organisation for Economic Co-operation and Development (OECD) has revised its outlook for India, raising the FY26 GDP growth forecast by 40 basis points (bps) while slashing the consumer price index (CPI) inflation estimate by 120 bps.
According to the update, the OECD now expects India’s economy to expand at a faster pace in FY26, reflecting resilience in domestic demand and supportive government policies. At the same time, the CPI inflation forecast has been sharply cut by 120 bps to 2.9% for FY26, indicating a more benign price environment.
The revision highlights the OECD’s confidence in India’s medium-term growth trajectory while acknowledging improving inflation dynamics. The updated projections come against the backdrop of global uncertainties, where India continues to remain one of the fastest-growing major economies.
