Correct option is B
The correct answer is (b) 6.7%
Explanation:
· In September 2025, the Organisation for Economic Co-operation and Development (OECD) raised India's GDP growth forecast for the 2025 calendar year (or fiscal year 2025-26, FY26) to 6.7%.
· This was an upward revision from the earlier projection of 6.3% made in June 2025.
· The upward revision was attributed to strong domestic demand, robust Goods and Services Tax (GST) reforms implemented in September 2025, and monetary and fiscal policy easing.
Information Booster:
· The report noted that while higher tariffs were expected to impact the export sector, overall domestic economic activity was anticipated to remain resilient.
· Inflation projections were also cut sharply to 2.9% for FY26 from an earlier 4.1%, helped by strong domestic supply and export restrictions.
· The OECD expected growth to be sustained by rising real incomes, strong public capital expenditure, and expectations of improving household purchasing power.
Additional Knowledge:
(a) 6.3% (Option a)
· This was the OECD's previous, lower growth projection for India, made in June 2025, which was subsequently raised in September. It was also the World Bank's former projection, updated to 6.5% in October 2025.
(c) 7.2% (Option c)
· The Reserve Bank of India (RBI) has projected a higher GDP growth rate for India for FY26 (7% or higher), but 7.2% is not the specific OECD figure for September 2025.
(d) 5.9% (Option d)
· This figure does not align with the OECD's specific revised forecast numbers mentioned in the reports surrounding September 2025.