OECD Raises India’s 2025 GDP Forecast to 6.7%

The Organisation for Economic Cooperation and Development (OECD) on Tuesday raised India’s GDP growth forecast for 2025 to 6.7%, up from its earlier projection of 6.3% in June, driven by strong domestic demand and robust Goods and Services Tax (GST) reforms.

In a statement, the agency noted that higher tariff rates will weigh on the export sector, but overall economic activity is expected to be supported by monetary and fiscal policy easing, including GST reforms.

Earlier, S&P Global Ratings, in its latest report, projected India’s economy to remain steady with 6.5% growth in FY25–26—the fastest in the Asia-Pacific region—largely supported by robust domestic demand and continued government investment.

Recently, Finance Minister Nirmala Sitharaman stated that GDP growth in FY25–26 could exceed the projected range of 6.3%–6.8%, fueled by a surge in consumption following recent GST tariff cuts and a strong Q1 performance.