OECD keeps India's growth outlook steady, flags US tariff risks despite easing policy and GST boost

OECD has kept India's FY26 growth forecast unchanged at 6.7% and FY27 at 6.2%, citing easing monetary policy and public capex while warning that higher US tariffs could hit exports. The Organisation for Economic Co-operation and Development (OECD) has retained its growth forecast in its latest economic outlook for the current financial year at 6.7 per cent, citing monetary policy easing and the overhaul of the goods and services tax regime. It further kept FY27 growth forecast unchanged at 6.2 per cent. However, the 50 per cent tariff imposed by the US on India will weaken export growth. Besides, the OECD lowered its retail inflation forecast for the current financial year by 100 basis points (bps) to 1.9 per cent and by 50 bps to 3.4 per cent for FY27.

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