OECD raises India's growth outlook to 6.7% in 2025 over domestic demand, GST reforms
The Organisation for Economic Co-operation and Development (OECD) has raised India’s growth projection for 2025 to 6.7%, citing strong domestic demand and continued policy reforms such as the Goods and Services Tax (GST). India remains the fastest-growing major economy, supported by rising consumption, investment activity, and government-led infrastructure development. The OECD noted that GST reforms have enhanced compliance and boosted revenue collection, contributing to fiscal stability. At the same time, private sector investment and resilient household spending are expected to fuel expansion. However, the report highlighted that global uncertainties, inflation risks, and external trade challenges could pose hurdles. Despite these headwinds, India’s structural reforms, digital transformation, and economic resilience are likely to keep growth momentum intact. With inflation projected to ease gradually, policymakers are expected to maintain a balance between fiscal support and monetary stability, ensuring India remains on track for sustainable long-term growth.
The Key points
- OECD revised India’s 2025 GDP growth to 6.7%.
- Strong domestic demand driving economic expansion.
- GST reforms improving tax compliance and revenue collection.
- India remains fastest-growing major global economy.
- Infrastructure spending boosting long-term growth outlook.
- Private sector investments strengthening economic activity.
- Household consumption continues to show resilience.
- Inflation expected to ease gradually in 2025.
- Global uncertainties and trade risks remain challenges.
- Structural reforms and digital growth sustain economic momentum.
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