OECD sees India growing at 6.7% in FY26, S&P at 6.5%

NEW DELHI: The Organisation for Economic Cooperation and Development (OECD) on Tuesday lifted India’s financial progress forecast by 40 foundation factors for 2025-26, citing financial and financial coverage easing and reforms linked to the Goods and Services Tax (GST).“In India, higher tariff rates will weigh on the export sector, but overall activity is anticipated to be supported by monetary and fiscal policy easing, including the reform to the Goods and Services Tax, with growth projected to be 6.7% in 2025 and 6.2% in 2026,” the Paris-based OECD stated in its financial outlook.In a separate report, S&P Global Ratings retained India’s GDP progress at 6.5% for the present fiscal 12 months, citing sturdy home demand. “We expect domestic demand to remain strong, supported by a largely benign monsoon season, cuts in the income and the goods and services tax, and accelerating govt investment. GDP growth in the June quarter was better than we expected at 7.8%,” the company stated in a report. The scores company expects China’s financial system to gradual to about 4% year-on-year in the second half of 2025 and 2026 as a result of weakening exports, tepid natural home demand, and contained macro stimulus. Downward strain on costs will persist, it stated.