India's Growth Outlook Gets Broad Upgrade as OECD, S&P, Fitch and ADB Raise FY27 Projections

India's economic growth outlook has received a significant boost. With major global institutions such as the OECD. S&P Global Ratings, Fitch Ratings, and the Asian Development Bank (ADB) raising their GDP forecasts for the current financial year.

The upgrades follow stronger-than-expected economic growth in the April-June quarter, when India's GDP expanded 7.8%.

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India's economy has defied headwinds, with domestic demand and investment fueling expansion despite the ongoing West Asia conflict and rising energy costs. The Organisation for Economic Co-operation and Development now predicts India's FY2026-27 growth will reach 7.1%.

A significant uptick from its June forecast of 6.3%, driven by strong industrial output, consumption, and a surge in government spending.

According to the OECD, India's inflation is expected to average 4.7% in 2026, with government price-support measures helping to contain the impact of higher energy costs in the near term. The Reserve Bank of India's FY27 growth estimate stands at 6.7%, compared with the economy's 7.8% growth in FY26.

The OECD expects global economic prospects to remain "heavily dependent" on a durable resolution to the Middle East conflict. "Persistent uncertainty about the evolution of the Middle East conflict remains a key risk to the baseline projections," the OECD said.

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"We have consequently upgraded our GDP growth forecast for the current fiscal year, ending March 31, 2027, to 7 per cent, from 6.6 per cent previously," said S&P Global Ratings. "We expect the balance of considerations to shift toward higher interest rates."

The Asian Development Bank (ADB) raised its FY27 growth forecast to 7%. From 6.6% estimated in July, citing stronger-than-expected first-quarter performance and strong investment and consumption. Moody's Ratings also raised its FY27 real GDP growth forecast to 7% from 6%, citing India's resilience amid the Middle East conflict.