Good news is coming from abroad about the Indian economy, while the US has imposed a 50% high tariff on the country, which seems neutralized in front of the fast pace of the economy. Fitch Ratings have recently increased India’s GDP growth estimates, while the Economic Cooperation and Development Organization (OECD) has now made a huge increase of 40 basis points in its development estimate for the current financial year.
The economy will reach 6.7%
Paris -based OECD, France, has suddenly increased India’s development estimate for the current financial year from 40 to 6.3% to 6.7%. According to the report, this remarkable increase in the estimate of the organization is due to the GST reforms implemented by the Modi government in India, which has made everything cheaper from food and drink to TV, AV, and cars and bikes.
In its interim forecast on Tuesday, the Economic Cooperation and Development Organization (OECD) said that the high tariff rates imposed by Trump would put pressure on India’s export sector, but overall, all activities are expected to support all activities in monetary and fiscal strategies including GST reforms and rate cuts. However, OECD has reduced its financial year 2027 development estimate from 20 basis points to 6.2%.
S&P also trusts India
Not only OECD, but also the global rating agency S&P has maintained its confidence in India and despite the high tariff, has maintained its development estimate for the current financial year at 6.5%. The agency said that domestic demand will remain strong due to various steps taken by the Government of India, which will also be supported by tax deduction (GST deduction).
The global agency has also reduced its inflation estimate to 3.2% for the current financial year due to a steep fall in food inflation in India. The agency is also expecting another major cut in the repo rate this year, and said that the Reserve Bank of India can deduct the interest rate by 25 basis points. It is noteworthy that the RBI had cut a total of 100 basis points in the repo rate for three consecutive times, but kept it unchanged at 5.5% last August.
Fitch is also optimistic towards India
Prior to the OECD and S&P, the US rating agency Fitch Ratings also hoped that the Indian economy would continue to grow rapidly by ignoring Donald Trump’s 50% tariff. In his report in early September, Fitch gave good news for India, increased its economic growth estimate for FY 2026 from 6.5% to 6.9%. Even after Trump’s double tariff, the agency made a significant increase of 40 basis points in its estimate.
