India is poised to return to a high growth path while its BRIC (Brazil, Russia, India, China) peers Brazil, China and Russia are expected to record below-trend growth rates, an Organisation for Economic Co-operation and Development (OECD) report said on Tuesday.
“CLIs (composite leading indicators) point to growth below-trend in Brazil, China and Russia. Nevertheless, the CLI tentatively indicates a positive turning point in India, suggesting a return to faster growth,” the OECD report said.
India has grown below 5 per cent in each of the two previous financial years mainly because of the global slowdown coupled with domestic economic sluggishness.In the current financial year ending March 2015, the Reserve Bank of India expects the economy to pick up and grow at over 5.5 per cent.
Moreover, the formation of a new government with a sufficient majority has revived investor sentiment.
CLIs suggest “the growth momentum is weakening in most major emerging economies.”
For the OECD as a whole, and for the U.S. and Canada, CLIs point to stable growth momentum.
In the case of the U.K., the growth momentum is expected to stabilise at above-trend rates, while in Japan it points to a disruption in its growth momentum.
