Indian economy showing signs of better growth, says OECD
India and most of the developed world showed signs of better growth in December, but indicators point toward a slowdown in China, according to Paris-based think-tank OECD.
The latest finding by the Organisation for Economic Cooperation and Development (OECD) comes at a time when there are rising concerns about a prolonged slowdown worldwide, especially in emerging nations such as India.
Composite Leading Indicators (CLIs) that indicate turning points in economic activities showed a positive change for OECD nations as a whole in December, mainly in the US and Japan, according to the OECD.
"The CLIs for India and Russia also show signs of an upward change in growth momentum," the OECD, a grouping of mostly industrialised nations, said today.
The CLI for India rose to 95.6 in December, 2011, from 95.1 in November. In September and October last year, the same stood at 94.6.
"The CLIs for all other major OECD economies, the euro area and Brazil continue to point to below trend growth... the CLI for China points more strongly to a slowdown this month than in last month's (November) assessment," OECD said.
Last week, advance estimates from India's Central Statistical Organisation (CSO) said domestic economic growth is likely to fall to 6.9 per cent in 2011-12.
The GDP would slow to a three-year low from 8.4 per cent expansion last fiscal, the statistics said.
Going by the CSO, a sharp slowdown in the manufacturing, agriculture and mining sectors in the country are expected to adversely impact India's growth.
Despite slowdown fears, India's growth trajectory is considered to be better than many other economies, especially those in Europe, which are grappling with debt turmoil.
"Though figures of advance estimates for GDP for the current fiscal somewhat look disappointing by our recent growth experience, considering the current global context and the slowdown in the domestic industrial sector in particular, the growth performance is not all that surprising," Finance Minister Pranab Mukherjee said last week.
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