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India to witness stable growth momentum: OECD

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Monday, 10 August,London : India is expected to witness “stable growth momentum” while mixed trends are anticipated in other major developing and developed countries, Paris-based think tank OECD said on Monday.

Neighbouring China as well as Brazil are projected to see a loss in growth momentum, according to the Organisation for Economic Cooperation and Development (OECD).

These readings are based on Composite leading indicators (CLIs) — designed to anticipate turning points in economic activity relative to trend.

“Stable growth momentum is expected in Germany, Japan and India. The CLI for Russia also points to stable growth momentum albeit below long term trend,” the grouping said in a statement.

India surpassed China to become the world’s fastest growing economy with 7.5% growth in the quarter ended March 31. In 2014-15, the economy had grown 7.3%.

Last week, the Reserve Bank of India (RBI) had retained the country’s growth forecast at 7.6% for the current financial year (ending March 31, 2016). The central bank had also said that economic recovery is still work in progress though outlook is gradually improving.

In June, OECD had pegged India’s growth to remain “strong and stable” at 7.3% for this year on the back of revival in investments.

Meanwhile, OECD on Monday said that in Brazil and China, “CLIs point more strongly than last month to a loss in growth momentum” while France, Italy and euro area as a whole are projected to see firming growth.

“On the other hand, CLIs point to growth easing to around long-term trends in the US and the UK with tentative signs of a loss in growth momentum in Canada,” the statement said.

PTI