Indian economy sees growth momentum firming: OECD

January 12, 2015 05:43 pm | Updated November 17, 2021 12:00 am IST - London

India, along with Japan, is expected to see positive changes in growth momentum.

India, along with Japan, is expected to see positive changes in growth momentum.

Showing positive signs, India’s economic growth is firming up even as mixed trends are projected for most of the developed and developing nations, according to Paris-based think tank OECD.

India, along with Japan, is expected to see positive changes in growth momentum.

OECD’s projections are based on its Composite Leading Indicators (CLIs) - which are designed to anticipate turning points in economic activity relative to trend.

The Organisation for Economic Cooperation and Development on Monday said the indicators for November 2014 showed “diverging (growth) patterns across most major economies.

“The CLIs for Japan and India indicate positive and firming changes in growth momentum”.

Based on India’s November CLI of 99.5, the grouping said in a statement that the country’s growth is firming up.

The CLI stood at 99.3 in October, higher than 99.1 seen in September. Prior to that, the indicator touched 99 in August which was more than July’s CLI of 98.8.

After slowing to sub-5 per cent growth in the previous two financial years, Indian economy has started showing signs of pick-up. The GDP expanded by 5.7 per cent and 5.3 per cent in the first two quarters of current financial year (which ends on March 2015), respectively.

On Sunday, World Bank President Jim Yong Kim said there is much reason for optimism among investors, entrepreneurs and CEOs thinking of doing business in India as a whole.

“According to our projections, its (India’s) economy is expected to grow 6.4 per cent this year and even faster in 2016,” he had said.

OECD said stable growth momentum is anticipated for the US, Canada and China.

“The CLIs also point to stable growth momentum, albeit at relative lower levels, in France, Brazil, and in the euro area as a whole,” it added.

Meanwhile, CLIs for November 2014 indicate a loss of growth momentum in Germany, Italy and Russia. In the UK, the indicator points to growth easing though from relatively high levels.

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