OECD cuts India FY27 GDP growth forecast by 10 bps to 6.1%

Paris-based think-tank Organisation for Economic Co-operation and Development (OECD) on Thursday cut its FY27 GDP growth projection for India by 10 basis points, stating that lower American tariffs are set to aid its economic expansion.

After the revision, the forecast stands at 6.1 per cent.

Its GDP growth forecast for the next financial year retained at 6.4 per cent.

The organisation raised its retail inflation forecasts for FY27 and FY28 by 1.70 per cent to 5.1 and by 0.1 per cent to 4.1 per cent, respectively.

However, it noted that gas shortages may impact production, and rising oil and gas prices could push up inflation.

Repo rate hikes coming?

The OECD also sees the possibility of rate hikes going forward in order to tame inflation, stating that the RBI may do it temporarily in Q1.