Economic growth in India firming up: OECD

India’s growth is “firming up” while most major economies, including China and the US, are seeing stable momentum, according to the Paris-based think-tank, Organisation for Economic Cooperation and Development. In a report released on Monday, OECD also said the euro area is seeing tentative signs of positive change in growth momentum.

The analysis was based on its Composite Leading Indicators (CLIs), designed to anticipate turning points in economic activity relative to trend, in December 2014. In a reflection of improving growth prospects, the CLI for India inched up to 99.4 in December 2014 compared to November 2014.

"The CLI for India indicates firming growth while in Russia the CLI continues to point to a loss in growth momentum," OECD said in a statement.

India's CLI has been rising since August 2014 when it stood at August 98.9. In November last, the same stood at 99.3.

After slowing to sub-5 per cent growth in the previous two financial years, Indian economy has started picking up. The GDP expanded by 5.7 per cent and 5.3 per cent in the first two quarters of current financial year (which ends on March 2015), respectively.

Based on the updated base year for measuring national accounts, Indian economy registered 6.9 per cent growth during the 2013-14 period.

The Gross Domestic Product (GDP) growth rate for 2013-14 has gone up following adoption of the new series with base year 2011-12. The rate of expansion was estimated at 4.7 per cent under the old series that had 2004-05 as base year.

The base year was last revised in January 2010 and goes under revision every five years.

As per OECD, the CLIs in December 2014 indicate stable growth momentum in the OECD area as whole and "in some of the major economies, including the United States, Canada, Japan, China and Brazil".

There are "tentative signs of a positive change in growth momentum in the euro area, particularly in Germany and Spain," it added.

OECD is also a grouping of 34 mostly rich nations.