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OECD Projects India as Fastest-Growing Major Economy

  • 27 Mar 2026

On 26th March 2026, the Organisation for Economic Cooperation and Development (OECD) in its interim Economic Outlook has projected strong growth for India, while warning of global risks due to geopolitical tensions in the Middle East.

Key Points

  • India’s Growth Forecast:
    • 7.6% in 2025-26
    • 6.1% in 2026-27
    • 6.4% in 2027-28
    • Remains the fastest-growing major economy globally.
  • Global Growth Outlook:
    • Global GDP expected at 2.9% in 2026.
    • Likely to rise slightly to 3% in 2027.
    • Driven by tech investments and easing tariff pressures.
  • Impact of Middle East Conflict:
    • Disruptions in the Strait of Hormuz affecting energy supply.
    • Surge in oil and fertiliser prices.
    • Increased inflationary pressures and reduced global demand.
  • Energy Market Assumption:
    • Current disruptions expected to be temporary.
    • Energy prices projected to ease from mid-2026.
  • Overall Implication:
    • Global economy remains resilient but uncertain.
    • India continues to be a key growth driver despite external risks.