As per the Paris-based think tank Organisation for Economic Cooperation and Development (OECD), India's growth prospects continue to remain below trend even as most of the major economies are witnessing moderate improvements.
The Organisation for Economic Cooperation and Development (OECD) is a grouping of mostly rich nations and its assessment is based on Composite Leading Indicators (CLI) that are designed to anticipate turning points in economic activities. India's CLI stood at 97.3 in April, same as in February and March, but lower as compared to January which was at 97.5
Referring to global nations, OECD said that the CLIs for the United Kingdom, Canada, China and Brazil point to growth close to trend rates, while growth seems to be firming up in the United States and Japan. Further, it noted that in the euro area as a whole, the CLI continues to indicate a gain in growth momentum. In Germany, the indicator shows that growth is returning to trend.
India's economic growth slowed down to a decade-low of five percent in the last fiscal from 6.2 percent in the 2010-11 period. In May, the OECD had lowered the India's growth estimate to 5.3 percent for 2013 from 5.9 percent and had also cautioned that structural bottlenecks could further constrain investment and growth potential.