Davos 2024: India to be fastest growing G20 economy, will drive global growth, says OECD chief

OECD secretary general Mathias Cormann (right) and Moneycontrol's Chandra R Srikanth in Davos.

The Indian economy is expected to keep growing at the fastest pace among the G20 member countries and drive global growth, Organisation for Economic Cooperation and Development (OECD) Secretary General Mathias Cormann told Moneycontrol at the World Economic Forum in Davos.

“We expect a growth of more than 6 percent this year and next year. India, indeed, is performing extremely well and is helping to drive global growth,” he said. “But with all of the downside risks in the global economy, India is not immune from the impacts or negative impacts that might flow from developments in other parts of the world.”

The International Monetary Fund (IMF) has pegged India’s growth at 6.3 percent for the current financial year and the next. The Reserve Bank of India, too, revised the GDP growth forecast for FY24 by 50 basis points to 7 percent.

Cormann expects the RBI to ease interest rates as prices cool. “We see inflation coming down in India. And we do believe that in the second half of this year, there will be an opportunity to ease monetary policy in India gradually,” he said.

As India prepares for the Lok Sabha election in April-May, the OECD chief said a "very significant progress" had been made over the last decade or so and the growth performance would continue to deliver better living standards for people across India.

“Prime Minister Modi has been an inspirational leader for India. He and his team have done an outstanding job in leading the G20 in 2023,” the OECD chief said.