India likely to see weak economic growth, says OECD

PTI Posted online: Tuesday, Apr 08, 2014 at 0000 hrs
London : India and many major emerging economies are expected to see weak growth even as prospects have stabilised in most of the advanced countries, says a report by Paris-based think-tank OECD.

Besides India, Brazil and Russia are likely to witness economic growth weakening whereas the prospects look better for China.

The conclusions of OECD are based on Composite Leading Indicators (CLIs).

"CLIs, designed to anticipate turning points in economic activity relative to trend, point to weakening growth in major emerging economies, with the exception of China, where the CLI points to growth remaining around trend. CLIs point to growth below trend in Brazil and India, and to growth losing momentum in Russia," OECD said today.

The Organisation for Economic Co-operation and Development (OECD) is a grouping of mostly developed nations.

India's CLI declined to 97.6 in February from 97.7 registered in January.

CLI for India has been on the decline since November last year when it stood at 97.9. In December last, it had slipped to 97.8.

Last week, the Reserve Bank of India (RBI) projected the an economic growth rate of grow less than 5 per cent in (2013-14).

"Real GDP growth is projected to pick up from a little below 5 per cent in 2013-14 to a range of 5-6 per cent in 2014-15 albeit with downside risks to the central estimate of 5.5 per cent," the central bank had said.

Meanwhile, OECD said that CLIs for the 33-member grouping as well as the United States and Canada indicate growth remaining around trend.

"CLIs point to growth returning to trend in Japan above trend in the United Kingdom... In the Euro Area as a whole, and in Italy, CLIs continue to indicate a positive change in momentum," the grouping said in a statement.

In Germany, growth is expected to be above trend while for France the CLI points to stable growth momentum, it added.