India is the “only major economy” that is projected to see a pick up in growth momentum whereas mixed trends are predicted for the developed world, Paris-based think tank Organisation for Economic Cooperation and Development (OECD) said on Wednesday.
The readings, for the month of September, are based on Composite Leading Indicators (CLI) that are designed to anticipate turning points in economic activity relative to trend.
In September, CLI for India touched 99.1, the highest since May this year when it stood at 98.6. In August, the same was at 99.
The OECD in its last forecast had also scaled down India’s GDP estimate for the current fiscal to 5.4 % but raised it to 6.4 % next fiscal.
Most of the major economies — developed and developing — including the United States, Brazil, China and Russia, are expected to witness stable growth momentum.
The CLI points to growth losing traction in Japan, much of the Euro zone as well as United Kingdom.
Last month, the International Monetary Fund and the World Bank projected 5.6 % growth rate for India this year, citing renewed confidence in the market due to a series of economic reforms pursued by the new government.
India’s economic growth was below 5% in the last two financial years. Recently, the Reserve Bank of India (RBI) forecast economy to grow at 5.5 % in 2014-15 and at 6.3 % in 2015-16