India and China are the world's only major economies on track for further economic slowing this year, according to the latest compilation of composite leading indicators by the Organization for Economic Cooperation and Development. "The performance of China's manufacturing and services sectors have not been encouraging, while in India, the central bank had cut interest rates by 25 basis points in January, its first reduction since April 2012, to support economic growth," the OECD said.
(OECD) has revised its growth cycle outlook for India from “below trend” to “slowing down”, indicating the worst might not be over for the Indian economy.
The composite leading indicators (CLIs) released by the Paris-based grouping of developed countries showed the measure for India contracted 2.25% in January compared with a contraction of 1.58% in the previous month.
Although CLI for Russia stood lower than India’s at -2.49%, India and China are the only major economies for which OECD projected a further slowdown in economic activity. OECD said growth in Russia is picking up while for China’s is moderating.
India’s economy grew at 4.5% in the third quarter of the current financial year. In the year ending 31 March, growth is expected to slow to a decade low of 5%. The finance ministry has projected growth will pick up in the next financial year to 6.2-6.7%.
OECD said in another report that overall growth momentum in Southeast Asia continues to show resilience despite ongoing global uncertainty.
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