OECD said that as per composite leading indicators (CLIs), designed to anticipate turning points in economic activity relative to trend, India’s reading was steady at 97.9, which was a tentative positive turning point in the country’s economic cycle. (Image credit: Reuters)
The indicators suggest “the growth momentum is weakening in most major emerging economies”. For the OECD as a whole and for the US and Canada, CLIs point to stable growth momentum. (Image credit: PTI)
The same is true for the United Kingdom, where the growth momentum is stabilising at above-trend rates. (Image credit: Reuters)
In the Euro Area as a whole, and in Italy, CLIs continue to indicate a positive change in momentum. In Germany and France, CLIs point to stable growth momentum. (Image credit: Reuters)
India has grown below 5 % in each of the two previous financial years mainly because of the global slowdown coupled with domestic economic sluggishness. (Image credit: Reuters)
In FY15, the Reserve Bank of India expects the economy to pick up and grow at over 5.5 %. (Image credit: Reuters)
Moreover, the formation of a new government with a sufficient majority has revived investor sentiment, which is reflected in the stock market surge and strengthening of the domestic currency. (Image credit: Reuters)
The graphs show country specific composite leading indicators (CLIs). Turning points of CLIs tend to precede turning points in economic activity relative to trend by approximately six months. The horizontal line at 100 represents the trend of economic activity. Blue triangles mark confirmed turning-points of the CLI.