The agency has cut India’s FY26 CPI inflation forecast by 120 bps to 2.9%

The Organization for Economic Cooperation and Development (OECD) on Tuesday raised India's GDP growth by 40 bps to 6.7 per cent in 2025 from its earlier projection of 6.3 per cent in June -- driven by strong domestic demand and robust GST reforms. 

The OECD's latest 'World Economic Outlook' mentioned that 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 (GST), with growth projected to be 6.7 per cent in 2025 and 6.2 per cent in 2026".

The food price inflation has declined sharply in India, helped by strong domestic supply and export restrictions, said OECD in its latest report.

Global growth proved more resilient than expected in the first half of 2025, especially in many emerging markets. The OECD raised its growth forecast for the global economy to 3.2% for this year but kept its 2026 forecast steady at 2.9%, saying it expects global trade uncertainties sparked by U.S. tariffs will likely contract investment and trade in the second half of 2025.

S&P retains India's GDP growth forecast at 6.5%

S&P Global Ratings on Tuesday retained India's GDP growth forecast at 6.5 per cent in the current fiscal, citing strong domestic demand amid a largely benign monsoon.

 S&P also said it expects a 25 bps rate cut by the RBI this fiscal as it revised its inflation forecast down to 3.2 per cent for this fiscal year.

India's GDP grew at 7.8 per cent in the April-June quarter.

"We forecast India's GDP growth to hold steady at 6.5 per cent this fiscal year (year ending March 31, 2026). 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 government investment," S&P said in a statement.