In News: India Becomes World’s Fastest Growing Economy

India surpasses China to become the world’s fastest growing economy by clocking 7.5% GDP.

Director for Education and Skills (OECD), Andreas Schleicherat at a news conference at the Swedish Rosenbad Government headquarters in Stockholm, in May, 2015.(Photo: Reuters)

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 the Paris-based think tank Organisation for Economic Cooperation and Development (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.
— OECD

OECD, which encompasses 34 countries, projected India’s growth to remain “strong and stable” at 7.3 per cent in 2015 on the back of revival in investments last week.

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

Meanwhile, OECD said that “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.”

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