OECD raises the Indian economy growth rate forecast to 6.6% in 2024-25

The Organisation for Economic Co-operation and Development (OECD), in its latest report, “Economic Outlook,” released on 2 May 2024, has raised its economic growth rate forecast for the Indian economy for 2024-25 to 6.6%. In its earlier report, it had projected a growth rate of 6.2 per cent for the Indian economy in 2024-25.

It has also forecasted a growth rate of 6.6 % for 2025-26.

The OECD is the latest international institution which has raised the growth rate prospect for the India economy. 

Recently International Monetary Fund raised the expected growth rate of the Indian economy in 2024-25 to 6.8%

The OECD expects the world economy to grow by 3.1 percent in 2024 and 3.2 percent in 2025. 

OECD report  Highlights 

Accroding to the OECD, the Indian economy is expected to grow faster in 2024-25 due to an increase in public investment and improved business confidence.

The report says that increasing government investment will give a boost to capital formation in the country.

Indian exports will continue to grow driven mainly by the service sector such as information technology and consulting.,

The report also said that the government needs to do more to address the growing problem of indebtedness by increasing its revenues, improving spending efficiency, and stronger fiscal rules. 

Expected Growth Rate of the Indian economy in 2023-24/2024-25

Following are the forecasts of various global and Indian financial agencies (as of 3 May  2024)

About OECD

The Organization for Economic Co-operation and Development (OECD) is a group of 38 democratic countries with market-based economies.

It was founded in 1961.

It was set up to develop policy standards to promote sustainable economic growth.

The OECD conduct research on global and regional economic issues . It provides reliable data to its member countries for making economic policies.

At present, the  OECD member countries account for 18 per cent of the world’s population, three-fifths of the world's gross domestic product, three-quarters of world trade, and half of the world’s energy consumption.

Members of OECD-  38 countries, Costa Rica joined in 2021. China, India and Russia are not the members of the OECD

Headquarters: Paris, France