India’s GDP growth likely to slow at 6.3% in FY26: OECD

The Organisation for Economic Co-operation and Development (OECD) has cut India’s GDP growth rate by 0.10 per cent to 6.3 per cent in the financial year 2026 (FY26). This is the further rate cut by OECD from 6.4 per cent projected in March 2025 to 6.3 per cent.

For FY27, OECD has forecasted the GDP growth rate cut by 0.6 per cent to 6.4 per cent, Zee Business reported.

The inflation rate is projected at 4.1 per cent.

US growth likely to slow to 1.6% this year, says OECD 

U.S. economic growth will slow to 1.6 per cent this year from 2.8 per cent last year as President Donald Trump’s erratic trade wars disrupt global commerce, drive up costs, and leave businesses and consumers paralyzed by uncertainty.

The OECD forecast on Tuesday that the US economy — the world’s largest — will slow further to just 1.5% in 2026. Trump’s policies have raised average US tariff rates from around 2.5 per cent when he returned to the White House to 15.4 per cent, highest since 1938, according to the OECD. 

Tariffs raise costs for consumers and American manufacturers that rely on imported raw materials and components.

World economic growth will slow to just 2.9% this year and stay there in 2026, according to the OECD’s forecast. It marks a substantial deceleration from growth of 3.3 per cent global growth last year and 3.4 per cent in 2023. The world economy has proven remarkably resilient in recent years, continuing to expand steadily, though unspectacularly, in the face of global shocks such as the COVID-19 pandemic and Russia’s invasion of Ukraine.

But global trade and the economic outlook have been clouded by Trump’s sweeping taxes on imports, the unpredictable way he’s rolled them out, and the threat of retaliation from other countries. Reversing decades of US policy in favor of freer world trade, Trump has levied 10 per cent taxes — tariffs — on imports from almost every country on earth along with specific duties on steel, aluminum, and autos. He’s also threatened more import taxes, including a doubling of his tariffs on steel and aluminum to 50 per cent.