Why this matters now
OECD is tested for: founded 30 Sept 1961; successor to OEEC (Organisation for European Economic Co-operation) 1948 set up to administer Marshall Plan aid; HQ Chateau de la Muette, Paris; 38 members; Secretary-General Mathias Cormann (Australia, 2021-); India is a key partner (along with Brazil, China, Indonesia, South Africa) — not a member; OECD Inclusive Framework on BEPS (Base Erosion + Profit Shifting) 145+ jurisdictions; Pillar 1 (reallocate $200 b multinational profits to market countries) + Pillar 2 GLOBAL MINIMUM CORPORATE TAX 15% effective 1 Jan 2024; India key supporter; flagship publications — OECD Economic Outlook + Better Life Index + PISA Programme for International Student Assessment (every 3 years).
38 members
Original founding members 1961 (20): Austria, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, UK, USA. Joined later: Japan (1964), Finland (1969), Australia (1971), New Zealand (1973), Mexico (1994), Czech Republic (1995), Hungary + Poland + South Korea (1996), Slovakia (2000), Chile + Estonia + Israel + Slovenia (2010), Latvia (2016), Lithuania (2018), Colombia (2020), Costa Rica (2021).
Accession in progress: Bulgaria, Croatia, Romania, Argentina, Brazil, Indonesia, Peru.
India & OECD
- India is a Key Partner (since 2007 enhanced engagement programme) — not a member.
- Participates in OECD committees on taxation, investment, statistics, education, agriculture, environment.
- OECD Investment Policy Review of India 2009 + Economic Survey of India biennially.
- BEPS Inclusive Framework — India a key supporter. Implemented Equalisation Levy 2016 as interim digital tax measure pending Pillar 1.
- 2024 G20 India presidency — pushed BEPS implementation + global standards.
OECD Pillar 1 + Pillar 2
| Pillar | What it does |
|---|---|
| Pillar 1 | Re-allocate taxing rights on ~$200 b of largest MNE profits to market jurisdictions (where customers are). Targets ~100 firms with >EUR 20 b revenue + >10% profitability. Multilateral Convention signed but not yet in force; India ratifies separately. |
| Pillar 2 | Global Minimum Corporate Tax — 15% effective rate floor on MNE groups with >EUR 750 m revenue. Uses Income Inclusion Rule (IIR) + Undertaxed Payments Rule (UTPR) + Qualified Domestic Minimum Top-up Tax (QDMTT). Effective 1 January 2024; ~40 jurisdictions implementing. |
UPSC angle
Know OECD Organisation for Economic Co-operation and Development — founded 30 SEPT 1961 successor to OEEC (Organisation for European Economic Co-operation) 1948 set up to administer MARSHALL PLAN aid; HQ CHATEAU DE LA MUETTE PARIS; 38 MEMBERS mostly high-income democracies RICH NATION CLUB; SEC-GEN MATHIAS CORMANN AUSTRALIA 2021-; INDIA KEY PARTNER since 2007 (with Brazil China Indonesia South Africa) NOT A MEMBER; OECD INCLUSIVE FRAMEWORK ON BEPS Base Erosion + Profit Shifting 145+ jurisdictions; PILLAR 1 reallocate $200 b multinational profits to MARKET countries targets ~100 firms >EUR 20 b revenue >10% profitability; PILLAR 2 GLOBAL MINIMUM CORPORATE TAX 15% effective rate floor on MNE groups >EUR 750 m revenue (IIR Income Inclusion + UTPR Undertaxed Payments + QDMTT Qualified Domestic Minimum Top-up Tax) EFFECTIVE 1 JAN 2024 ~40 jurisdictions; INDIA KEY SUPPORTER implemented Equalisation Levy 2016 interim digital tax; flagship publications OECD Economic Outlook + Better Life Index + PISA Programme International Student Assessment every 3 years; founding 1961 (20 members) + JAPAN 1964 + Finland 1969 + Australia 1971 + NZ 1973 + Mexico 1994 + Czech 1995 + Hungary Poland S Korea 1996 + Slovakia 2000 + Chile Estonia Israel Slovenia 2010 + Latvia 2016 + Lithuania 2018 + Colombia 2020 + Costa Rica 2021; ACCESSION progress Bulgaria Croatia Romania Argentina Brazil Indonesia Peru; INDIA OECD Investment Policy Review 2009 + biennial Economic Survey of India; 2024 G20 INDIA presidency pushed BEPS implementation.
Frequently asked questions
Is India a member of OECD?
No. India is a Key Partner (since 2007) — participates in OECD committees + BEPS framework but is not a full member.
What is the OECD Global Minimum Tax?
OECD Pillar 2 — a 15% global minimum effective corporate tax on multinational groups with >EUR 750 m revenue. Effective from 1 January 2024 in ~40 jurisdictions. Uses Income Inclusion Rule (IIR) + Undertaxed Payments Rule (UTPR) + Qualified Domestic Minimum Top-up Tax (QDMTT).
What is OECD’s relationship to the Marshall Plan?
OECD’s predecessor OEEC (1948) was created to administer Marshall Plan aid to post-war Europe. OECD (1961) succeeded OEEC with expanded membership beyond Europe.
What is PISA?
Programme for International Student Assessment — OECD’s every-3-year test of 15-year-olds’ reading, maths + science. India participated only in 2009 (ranked 73 of 74); has not participated since.