Tuesday, March 13, 2012

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Indian Economy Showing Strong Signs Of Recovery

Mar-13-2012

Date: 13.03.2012



The Indian economy is showing strong signs of recovery along with Russia. China on the other hand is heading towards slower economic growth, as per the Paris based think tank - the Organisation for Economic Cooperation and Development (OECD).

The OECD which is a grouping of over 30 nations that account for more than 60% of global economic output, bases its readings on Composite Lead Indicators (CLI) which indicate turning points in economic activities. In January, India's CLI rose to 102.1 from 101.9 in December 2011 indicating an increase in economic activity.

In fact as per OECD, most of the developed economies are showing positive change in momentum, but the trend is stronger in India and Russia. However, the CLIs for China and Brazil continue to point to below-trend growth. The US and Japan continue to drive the overall position but 'stronger, albeit tentative, signals are beginning to emerge within all other major OECD economies and the Euro area as a whole', as per the think tank.

The readings have come in at a time when fears of the Indian economy slowing down are looming large. Even official estimates are pegging GDP growth at 6.9% for the current fiscal. Growth for the next fiscal is also expected to be around the 7-7.5% mark. The World Bank has also recently cautioned that downside risks to Indian economic growth remain high.

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