OPEC sees a strong and broad-based expansion in India
(16:15, 12 Nov 2026)
OPEC’s most recent monthly report articulated that prevailing data implies the impetus observed in 1H26 persisted into 3Q26 and the nascent phase of 4Q26, signifying a robust and pervasive expansion. Economic growth was upwardly adjusted to 8.6%, y-o-y, in 1Q26 and sustained its exceptional strength at 7.8%, y-o-y, in 2Q26, substantially surpassing prior projections. This expansion was underpinned by vigorous private expenditure, fixed capital formation, manufacturing, and services, reinforcing India’s standing as a premier, high-growth major economy notwithstanding elevated energy costs and a complex global milieu. Industrial output advanced by 6.7%, y-o-y, in September, subsequent to 7.8% in August, with manufacturing exhibiting expansion of 7.6% and electricity and gas production registering 11.2%. Capital-goods production maintained a particularly resilient performance at 10.4%, while intermediate goods increased by 12.2%, indicative of sustained strength in investment and industrial activity. Automotive demand also remained vigorous, with aggregate retail sales rising by 31.8%, y-o-y, in September, although a portion of the increment was attributable to a favorable base effect. Labour-market dynamics have also remained conducive. The report posited that India is anticipated to endure its position as a leading, high-growth major economy throughout the remainder of 2026 and into 2027. Robust consumption, investment, manufacturing, and services furnish a firm foundation for continued expansion, as also mirrored in the latest economic growth appraisal of the RBI, which has revised its FY2026/27 growth forecast to 7.1% from 6.7%.