The Organisation for Economic Co-operation and Development has sharply raised its projection for India’s economic growth in the 2026-27 financial year, forecasting expansion of 7.1%. The revision comes in the OECD’s September 2026 Interim Economic Outlook and marks a significant increase from its earlier 6.3% estimate.
The latest assessment places India among the economies expected to maintain relatively strong growth despite a challenging global environment. The OECD’s new outlook says the global economy has proved more resilient than anticipated despite successive shocks, including the energy disruption linked to conflicts in the Middle East. Global GDP growth is now projected at 2.9% in 2026 and 3% in 2027.
India’s upgraded projection comes against the backdrop of strong domestic economic activity. OECD data released earlier this month showed India recorded 8.1% year-on-year GDP growth in the second quarter of 2026, the highest among the G20 economies covered in that release. Quarterly growth, however, moderated from 2.1% in the first quarter to 1.8% in the second quarter.
The OECD’s earlier June forecast had projected India’s FY2026-27 growth at 6.3%, citing higher energy prices, weaker global demand and other pressures. The latest revision therefore represents an upward adjustment of 0.8 percentage points.
However, the international agency continues to flag risks. Higher energy prices, inflationary pressures, elevated interest rates and geopolitical uncertainty could affect growth momentum. The OECD also highlighted continued investment in artificial intelligence as an important support for global economic activity.
The upgraded forecast adds to the recent series of stronger growth assessments for India while underscoring the importance of managing external risks.
