India growth to remain subdued in near term, says OECD

Written by Press Trust of India | London | Updated: Nov 29 2011, 07:06am hrs
Paris-based think tank OECD on Monday said Indias economic growth is likely to remain subdued in the near term, and further policy tightening is warranted to tame inflation.

Growth has moderated and, against the backdrop of a weakening global economy, (it) is projected to remain relatively subdued and reliant on private consumption in the near term, OECD said about India in its latest Economic Outlook report.

As per OECDs latest projections, India would see a growth of 7.7% growth in 2011, lower than 9.9% expansion witnessed last year. In India , the annual rate of inflation remains high and is becoming more widespread. Further policy tightening is warranted to help contain demand pressures and reduce the risk of inflation expectations becoming destabilised, OECD said.