Business

OECD lifts India FY27 growth forecast to 7.1%

By Sohail Khan 23 September 2026, 1:55 pm

Benchmarks
Nifty23,429.25100.25

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
21.24 %

Invest Now

Enter search text:

Business News›News›Economy›Indicators›OECD raises raises India's FY27 GDP growth forecast by 80 bps to 7.1%

Read Today's Paper

OECD raises raises India's FY27 GDP growth forecast by 80 bps to 7.1%
Synopsis

The OECD has raised its FY27 India growth forecast by 80 basis points to 7.1%, from 6.3% earlier, joining Fitch, S&P Global Ratings and Moody’s in upgrading their projections after India recorded 7.8% GDP growth in Q1 FY27.

image (28) — OECD on Wednesday raised its forecast for India’s FY27 economic growth by 80 basis points to 7.1%.

OECD on Wednesday raised its forecast for India’s FY27 economic growth by 80 basis points to 7.1%, from 6.3% projected in June.

In its September Interim Economic Outlook, the OECD said India’s growth is expected to moderate from 7.8% in FY26 to 7.1% in FY27 and further to 6.5% in FY28.

The Paris-based forecaster warned that despite recent strong momentum, reduced purchasing power is expected to weaken growth in India through the second half of this year, before a gradual recovery takes place in 2027.

Why the world is getting more bullish on India

Fitch's latest upgrade raised its FY27 growth forecast by a sizeable 50 basis points, saying India's 7.8% expansion in the June quarter showed that “the economy has shown resilience in the face of the shock from the US-Iran war, despite the strong terms-of-trade deterioration seen in the first half of 2026."

Just a few hours earlier, S&P Global Ratings raised its FY27 forecast to 7% from 6.6%, while Moody's last week lifted its projection to 7% from 6%.

The upgrades come alongside growth in investment, consumption, manufacturing and services, as well as strong credit expansion.

Gross fixed capital formation, a measure of investment in assets such as factories, machinery and infrastructure, grew 11.9% in the June quarter. Manufacturing expanded 9.2%, while private consumption grew 7.1%. Financial, real estate and professional services grew about 12.1%.

India entered FY27 facing many of the pressures that would normally be expected to slow an oil-importing economy: war in West Asia, crude prices above $100 a barrel, disrupted shipping routes, global trade uncertainty and the threat of higher US tariffs.

Yet the expected economy-wide slowdown did not arrive in the first quarter.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(You can now subscribe to our WhatsApp channel)

Read More News on
india economyindia economy newsindia econpmy forecasteconomy newsindIA gdp growth

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year