India Economy to Grow 5.4% in 2014: OECD

Organisation for Economic Co-operation and Development (OECD) said Indian economy is expected to grow 5.4 per cent this year as global recovery continues at a moderate pace.

In its latest Economic Outlook, the Paris-based think tank said growth will strengthen in India as investment picks up, from a 5.4 per cent rate in 2014 to 6.4 per cent in 2015 and 6.6 per cent in 2016.

Earlier in September, OECD had projected a growth rate of 5.7 per cent for India.

OECD is a grouping of 34 countries. India's economic growth accelerated to 5.7 per cent in April-June quarter, much better than 4.7 per cent in the same quarter of previous fiscal year.

It said that the global economy remains stuck in low gear, but is expected to accelerate gradually if countries implement growth-supportive policies.

Financial risks remain high and may increase market volatility in the coming period, he said adding there is an increasing risk of stagnation in the euro area.

Global GDP growth is projected to reach a 3.3 per cent rate in 2014 before accelerating to 3.7 per cent in 2015 and 3.9 per cent in 2016, as per the outlook.

OECD said China is rebalancing its economy while trying to achieve a controlled slowdown to more sustainable growth rates, and is projected to grow at around 7 per cent over the 2015-16 period, down slightly from 7.4 per cent in 2014.