India continues to see stable growth momentum: OECD

Pegs growth rate at 7.4% for 2016

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Indian economy is witnessing "stable growth momentum" and mixed trends are seen in other parts of the world including China and the US, according to Paris-based think tank OECD.

The assessment is based on the grouping's Composite Leading Indicators (CLIs), that are designed to anticipate turning points in economic activity relative to trend.

"The CLIs continue to point to stable growth momentum in India and to easing growth in China. However, a loss in growth momentum remains the outlook for Brazil," the Organisation for Economic Cooperation and Development (OECD) said today.

OECD, a grouping of 34 countries, last week projected India's growth to remain "strong and stable" at 7.3 per cent in 2015 on the back of revival in investments.

Pegging the growth rate at 7.4 per cent for 2016, the grouping had said that decline in oil prices would reduce pressures on the current account deficit, inflation and subsidies.

India has surpassed China to become the world's fastest growing economy by clocking 7.5 per cent GDP for the March quarter. In 2014-15, economy grew 7.3 per cent, as per figures released by Central Statistics Office last month.

Meanwhile, OECD said the CLIs point to firming growth in the euro area, particularly in France and Italy, while growth momentum shows signs of easing in Canada and the US," the grouping said in a statement.

Stable growth momentum is anticipated in the UK, Germany and Japan, and tentative signs of a positive change are emerging in Russia, it added.