OECD suggests weakening of growth in India

Paris-based think tank OECD said on Wednesday leading indicators point towards weakening growth in India though it forecast rapid recovery in rich nations, including those in euro-zone.

"The CLIs (Composite Leading Indicators) for the United Kingdom, Canada, Brazil and Russia point to growth close to trend rates while the CLI for India indicates weakening growth," the think tank said.

CLIs, which include various parameters, are designed to anticipate turning-points in economic activity relative to trend.

They point to growth picking up in major economies.

The monthly indicator for the 33 OECD member countries increased marginally to 100.5 in February from 100.4 in the previous month.

For India, the CLI slipped to 96.8 in February from 97.1

per cent in January.

The OECD's assessment is contrary to projections of the Indian government which expects growth to improve to over 6 per cent in 2013-14 from 5 per cent in the previous financial year.

In the US and Japan, OECD said, the CLIs continue to point to economic growth firming.

The CLI for China provides a more positive outlook compared with last month's assessment, with the CLI now pointing towards growth picking up.

In the euro area as a whole, and in particular in Germany, OECD said, the CLIs continue to indicate pick-up in growth.

Further, the CLIs point to no further decline in France and to a positive change in momentum in Italy.

The Indian government has taken several steps, including further liberalisation of foreign investment policy and fast tracking mega projects, to boost the country's economic growth.