London: India's economic growth is gaining momentum, Paris-based think tank OECD said on August 11 amid the new government initiating various measures to bolster the economy. Major developed nations, including the United States and Canada, also continue to see "stable growth momentum".
According to the Organisation for Economic Cooperation and Development (OECD), India is poised for better growth. The readings are based on Composite Leading Indicators (CLIs), that are designed to anticipate turning points in economic activity relative to trend. "For the major emerging economies, the CLIs indicate growth around trend in China and Russia and below trend in Brazil, while the CLI for India points to growth gaining momentum," OECD said in a statement.
India's CLI inched up to 99.2 in June from 98.9 in May. The country's economy, which registered sub-five per cent growth in the past two years, is expected to see better expansion rate in the coming months. Indian economy is likely to expand in the range of 5.4 to 5.9 per cent this fiscal. After recovering in 2009-10 and 2010-11, GDP growth slowed down to decade's low of 4.5 per cent in 2012-13. It picked up marginally to 4.7 per cent in 2013-14.
The new government, which took charge in May, has initiated various measures to attract more investments and remove bottlenecks in the infrastructure, among others, to boost growth. Meanwhile, OECD said the indicators for the United States and Canada are also showing stable growth momentum. "This is the case for the United Kingdom as well, where the growth momentum remains above-trend rates," it added.
However, Japan is anticipated to see an "interruption in the growth momentum although this probably reflects one-off factors". In the euro area as a whole and in France, the CLIs point to stable growth momentum, the statement said.
