OECD FY23 growth forecast for India

June 9, 2022

The Organisation for Economic Cooperation and Development (OECD) has reduced India’s growth to 6.9% growth in Financial Year 2023 from 8.1% estimated earlier.

Key Facts

Growth was also slashed to 6.2 percent in 2023.
OECD further expects policy rate to increase to 5.3% by the end of 2022 and remain same in 2023.
It is below RBI’s estimate of a 7.2% rise.
in 2021-22, India’s Gross domestic product (GDP) was 8.7%, which made India the fastest-growing major economy worldwide.
Recently, RBI increased the repo rate by 50 basis points (bps) to 4.9% to control the soaring inflation in India. It also started monetary policy tightening in May 2022.

Organisation for Economic Co-operation and Development (OECD)

OECD is an intergovernmental organization, comprising of 38 member countries. It was founded in 1961, for stimulating world trade and economic progress. Members of this forum describe themselves as committed to democracy and market economy. It provides a platform to compare policy experiences, identify good practices, seek answers to common problems, and coordinate domestic and international policies of member states. It is an official United Nations observer.

Member countries

Majority of OECD members are high-income economies, that have a very high Human Development Index (HDI). They are regarded as developed countries.

GDP of OECD

OECD member countries comprised 62.2% of global nominal GDP and 42.8% of global GDP, as of 2017.

When was OECD established?

The Organisation for European Economic Co-operation (OEEC), was established in 1948, by Robert Marjolin of France. It was established for administering the Marshall Plan (which was rejected by the Soviet Union). OEEC was reformed into Organisation for Economic Co-operation and Development (OECD) in 1961. Following this, membership was extended to non-European states.