New Delhi: India remains the world’s fastest-growing major economy with an expected growth of 6.7 per cent in 2025-26, driven by higher private consumption and buoyant government expenditure on infrastructure projects, according to the economic outlook report released by the Organisation for Economic Co-operation and Development (OECD).
"India’s real GDP is projected to grow by 6.7 per cent in fiscal year 2025-26, 6.2 per cent in 2026-27 and 6.4 per cent in 2027-28. Higher tariffs applied by the United States are expected to weigh on exports, but private consumption will be supported by rising real incomes as inflation remains low and consumption taxes decline," the report said.
Buoyant investment will be sustained by declining borrowing costs and strong public capital expenditure. Current low headline inflation is projected to gradually converge towards the 4 per cent target. Risks are broadly balanced. Bilateral negotiations with the US could lead to lower tariffs and boost exports and investment, while higher oil import prices could create inflation pressures, the report further stated.
It also pointed out that the current broadly neutral fiscal stance balances support to growth in the face of global trade headwinds with the need to rebuild fiscal buffers and bring public debt to a more prudent path. Sustaining strong public investment and encouraging private participation through enhanced public-private partnerships would speed up infrastructure development and ease persistent bottlenecks, the report observed.
The OECD report also states that the global economy has proved resilient this year, but underlying fragilities remain. It projects global growth slowing from 3.2 per cent in 2025 to 2.9 per cent in 2026, before picking up to 3.1 per cent in 2027.
India’s FDI jumps 18% to $35.18 billion in Q2 FY26New Delhi: India recorded a strong rebound in foreign direct investment (FDI) in the second quarter of the current financial year, with total inflows rising over 18 per cent year-on-year to $35.18 billion during April–September 2025, according to official data released on Monday. The country had attracted $29.79 billion in the corresponding quarter a year ago. The pick-up in investments was sharper at more than 21 per cent YoY to $16.54 billion in the June–September quarter alone. Of this, FDI equity inflows accounted for over $16.5 million. Sector-wise, services contributed the highest share of 16 per cent to FDI equity with inflows of $5.09 billion. The services segment includes financial services, banking, insurance, business outsourcing, R&D, courier service, and technology testing and analysis. A marked trend this fiscal has been the spurt in inflows from the US, which more than doubled to $6.62 billion during April–September, signalling renewed global investor confidence in the Indian market. |
