The Organisation for Economic Co-operation and Development (OECD) has projected that India’s economy will grow at 6.7% in 2025, reaffirming its position as the world’s fastest-growing major economy. The outlook credits structural policy reforms, resilient domestic demand, and government focus on investment and consumption as key drivers.
1. India’s Growth Outlook
According to the OECD’s latest Economic Outlook report, India’s GDP growth will remain above 6% through 2025–26, supported by:
Increased public capital expenditure, especially in infrastructure.
Robust private consumption, driven by rising incomes and stable inflation.
Continued reforms in manufacturing, logistics, and taxation.
“India’s growth momentum remains strong despite global headwinds,” the OECD report stated.
2. Global Comparison
India’s projected 6.7% growth far outpaces the global average of 3% and even major economies like the US (2.2%) and China (4.5%).
Emerging Asian economies are expected to contribute over 60% of global growth, with India as a key contributor.
3. Policy and Consumption Boost
The OECD emphasized that policy reforms — including PLI schemes, tax simplification, and digital infrastructure expansion — are improving productivity and attracting global investors.
Meanwhile, strong household consumption, aided by urban demand and rising rural spending, continues to sustain growth.
4. Risks to Outlook
The report also cautioned that India must watch for:
Inflationary pressures from global oil prices.
Uneven monsoon impacts on agriculture.
Slow export recovery due to global trade weakness.
Despite these, India’s medium-term prospects remain robust, with policy reforms expected to enhance long-term growth potential.
FAQs:
Q1. What is OECD’s growth forecast for India in 2025?
A1. The OECD projects India’s GDP growth at 6.7% for 2025.
Q2. What factors are driving India’s economic growth?
A2. Policy reforms, strong domestic consumption, and infrastructure spending are the key growth drivers.
Q3. How does India’s growth compare globally?
A3. India remains the fastest-growing major economy, outpacing China and the US.
Q4. What challenges could affect India’s growth?
A4. Global slowdown, inflation, and volatile energy prices are key risks.
Q5. What sectors are likely to benefit most?
A5. Manufacturing, infrastructure, digital economy, and services are expected to lead growth.
Published on : 23rd October
Published by : SMITA
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