Indian economy may slow down in coming months: report

India, one of the world's fastest growing nations, is likely to see a slowdown even as most of the advanced economies are expected to grow at a good pace in coming months, according to the Paris-based OECD.

An analysis by the Organisation for Economic Cooperation and Development (OECD) showed that economic activities are "showing some signs of slowing in India".

The observations are based on the grouping's latest Composite Leading Indicators (CLIs) released today, that provide early signals of turning points with regard to economic expansion and slowdown.

India's CLI slipped to 99.3 in January from 99.7 in the previous month. During the same period, neighouring China's reading dipped to 101.6 from 101.7.

"Inflationary pressures are also mounting in China and India stemming from different sources: soaring real estate prices in China and food prices in India," OECD said.

India's economic growth rate was 7.4% in 2009-10 and is projected to be over 8.5% for the year ending March 31, 2011.

After clocking over 9% growth for three years till 2007-08, the country's economic expansion slipped to 6.7% in 2008-09, due to the global financial meltdown.

Last week, Finance Minister Pranab Mukherjee exuded confidence that the economy would return to nine% growth in 2011-12. Going by the CSO data, the national economy is estimated to grow by 8.6% in the current fiscal.

Meanwhile, CLIs for Germany, Japan, and the US continue pointing to robust expansion relative to trend.

"Signs of regained growth momentum characterise the CLIs for France and Canada. The CLI for the United Kingdom points to a slow but stable pace of expansion. The CLI for Italy continues pointing to moderate downturn," the grouping noted.