Indian economy gaining growth momentum: OECD

The Organisation for Economic Cooperation and Development (OECD) in its latest report has stated that Indian economic growth is gaining momentum, on the back of various measures taken by the government to bolster the economy. The Composite leading indicators (CLIs), designed to anticipate turning points in economic activity relative to trend, for India inched up to 99.2 in June from 98.9 in May, indicating that economy is likely to see better expansion rate in the coming months. India's economic growth stayed below 5 percent for the second year in a row at 4.7 percent during FY14.

On global front, the OECD stated that growth momentum in most major economies is stable as CLI covering 33 member countries remained unchanged in June at 100.5, above its long-term average of 100. For the major emerging economies, the CLIs indicate growth around trend in China and Russia and below trend in Brazil, while the CLI for India points to growth gaining momentum.

The CLIs for the United States, United Kingdom and Canada continue to point to stable growth momentum. However, the CLI for Japan points to an interruption in the growth momentum as the leading indicator declined to 100.1 in June from 100.4 in the previous month. In the Euro Area, the CLI suggests growth losing momentum in Germany, whereas in Italy the CLI continues to indicate a positive growth momentum.