The slowdown in the Indian economy is expected to persist, says a report by the Organisation for Economic Co-operation and Development (OECD) released on Monday.
The composite leading indicators index for July 2011 shows most regions of the world will face a slowdown in economic activity with the only exception being Japan.
The OECD country specific composite leading indicators (CLIs) map the way data for the economy matches up against the long-term trend. Using that basis, the indicators, it says, are now pointed downwards more strongly for more economies, indicating a sure dip in economic activity compared with the assessment for June.
?Canada, France, Germany, Italy, the United Kingdom, Brazil, China and India are pointing more strongly to a slowdown in economic activity,? the report says. In addition, the CLIs for the United States and Russia are now also pointing more clearly to a slowdown.
The graphs for most OECD countries and other major economies show that the uptrend in the performance has got reversed.
According to the OECD, there is a six-month lead built into the indicators, which means if there is a turning point in a country?s graph, that would show up in the trend performance for the economy by approximately six months.
The CLI for the OECD area fell 0.5 point in July, the fourth consecutive monthly decline. While the slowdown for OECD and China is still above the long-term trend in economic activity, the growth rate for India has already dipped below the long-term trend.