SNS & PTI
LONDON/NEW DELHI, 10 JUNE: India’s growth prospects continue to remain “below trend” even as most of the major economies are witnessing moderate improvements, Paris-based think tank OECD said today.
While economic activities are close to trend rates in China, growth seems to be firming up in the United States and Japan.
OECD’s conclusions are based on Composite Leading Indicators that are designed to anticipate turning points in economic activities.
“The CLIs for the United Kingdom, Canada, China and Brazil point to growth close to trend rates. The CLI indicates that growth is losing momentum in Russia, whereas for India, it continues to indicate growth below trend,” OECD said.
India’s CLI stood at 97.3 in April, same as in February and March. In January, the reading was better at 97.5.
The Organisation for Economic Cooperation and Development (OECD) is a grouping of mostly rich nations.
India’s economic growth slowed to a decade-low of five per cent in the last fiscal from 6.2 per cent in the 2010-11 period.
Last month, OECD had scaled down India’s growth estimate to 5.3 per cent for 2013 from 5.9 per cent. It had also cautioned that structural bottlenecks could further constrain investment and growth potential.
“GDP growth is projected to rise gradually over the next two years… Significantly more growth would be forthcoming if structural bottlenecks were swept away by fundamental structural reforms,” the grouping had said.
Meanwhile, OECD today said that CLIs indicate moderate improvements in growth in most major economies while the United States and Japan are seeing firming economic growth.
“In the euro area as a whole, the CLI continues to indicate a gain in growth momentum. In Germany, the CLI shows that growth is returning to trend,” it noted.