India sees clear pick up in growth momentum: OECD

By: | Published: December 8, 2014 8:24 PM

Reflecting improved prospects, India is the only major economy seeing a "clear pick up in growth momentum"...

Reflecting improved prospects, India is the only major economy seeing a “clear pick up in growth momentum” while mixed trends are predicted for developed countries, according to Paris-based think tank OECD.

The Organisation for Economic Cooperation an Development said growth would continue to lose momentum in Europe.

For other major economies, the outlook is for stable growth momentum.

The readings, for the month of October, are based on Composite Leading Indicator (CLI) that are designed to anticipate turning points in economic activity relative to trend.

“India is the only major economy where the CLI points to a clear pick-up in growth momentum,” OECD said in a statement today.

The country’s CLI rose to 99.6 in October from 99.4 in the previous month.

Last month, OECD said that Indian economy is expected to see an average growth of 6.7 per cent over the 2015-19 period while a further boost would depend on reform plans of the government.

In October, the International Monetary Fund and the World Bank projected 5.6 per cent 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 per cent in the last two financial years. Recently, the Reserve Bank of India (RBI) forecast the economy to grow at 5.5 per cent in 2014-15 and at 6.3 per cent in next financial year 2015-16.

As per the OECD statement, amongst other major economies, the CLIs continue to point to stable growth momentum in the United States, Canada, China and Brazil. Tentative signs of a positive change in momentum are emerging in Japan.

The CLI for Russia points to growth tentatively losing momentum, it added.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition