​Worst not over yet for India, says OECD - Times of India

The author has posted comments on this articleTNN | Mar 12, 2013, 05.03AM IST NEW DELHI: There seems to be little respite from the economic downturn with the OECD, the Paris-based agency, saying that growth is slowing down in India. "In China, India and to a lesser degree in Brazil, the composite leading indicators (CLIs) point to growth below trend," the think-tank said in a statement. Compared to the long-term trend of economic activity, which is put at 100, the Indian economy had a score of 97.2, the lowest level seen in the last five months. Compared to January 2012, the decline is of the order of 2.25%, the second worst among a group of 11 economies that includes Brics and the G-7. Only Russia put up a worse performance, with a fall of 2.8%. But OECD< /a> said that the CLI indicated a pick-up in growth, indicating that the worst was over. In India's case, the worst was not yet over with the CLI graph continuing to fall since 2011 after plateauing in 2010. In fact, OECD did not spot a turning point in the curve despite the finance ministry making a pronouncement over a month ago. The finance ministry had contested the Central Statistical Office's estimate of the Indian economy expanding at 5% during 2012-13, the slowest pace of growth in a decade, and had suggested that the increase in economic activity would be of the order of 5.5%. North Block had based its assessment on three "turning points" but apart from an improved export performance, there has been little to cheer. On the manufacturing front, car and truck sales, a key barometer of economic activity, are down. Similarly, demand for white goods remains tepid. And, the slowdown in the manufacturing space has impacted the demand for services, as CSO had estimated. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHGXn0x_kZCw_swwGKQiFmGCdjr0A&url=http://timesofindia.indiatimes.com/business/india-business/Worst-not-over-yet-for-India-says-OECD/articleshow/18920727.cms

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