Economy continues to gain growth momentum, says OECD

India's economic growth continues to gain momentum while most major economies are seeing stable prospects, according to Paris-based think-tank OECD.

The Organisation for Economic Cooperation and Development is a grouping of 34 countries.

The readings are based on Composite Leading Indicators, which indicate turning points in economic activity relative to trend, for the month of July.

"In India, growth continues to gain momentum while in China and Russia CLIs point to stabilisation of growth momentum.

“The CLI for Brazil suggests a tentative upward change in momentum," OECD said in a statement.

India's CLI in July rose to 99 compared to 98.9 in June.

The same has been improving since it stood at 98.5 in March.

The country's growth touched 5.7 per cent in April-June quarter, the highest in two-and-a-half years.

India's gross domestic product had expanded by 4.7 per cent in the April-June quarter of the last fiscal ended March 31.

In the January-March period (last quarter of 2013-14), it was 4.6 per cent.

The previous high of GDP growth rate was recorded at 6 per cent in the October-December quarter of 2011-12.

Meanwhile, the grouping noted that CLIs continue to signal a stable growth momentum in most major economies.

"The CLIs for the OECD area as a whole as well as for the United States, Canada and United Kingdom continue to point to stable growth momentum," the statement said.

In Germany, the CLI continues to point to slowing momentum, whereas in Italy there are tentative signs of a loss of growth momentum.

In the euro area as a whole and in France, the CLIs remain stable, it added.

"The CLI for Japan continues to indicate an interruption in growth momentum though this may be related to one-off factors," the statement said.

Image: A trader sleeps on sacks of onions at a wholesale market in Ahmedabad. Photograph: Amit Dave/Reuters