Sharply revising upwards its forecast, Paris-based think tank OECD recently projected 5.7 per cent growth for the Indian economy this year even as global recovery continues at a moderate pace. Its latest estimate is way higher than the 4.9 per cent growth projection in May this year. “Growth inIndia is projected to pick up and Brazil will experience a modest rebound from recession. . . India will grow by 5.7 per cent in 2014 and 5.9 per cent in 2015,” the Organisation for Economic Cooperation and Development said. 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. Government expects growth in current fiscal to be between 5.4-5.9 per cent. The economy grew by sub-5 per cent in 2012-13 and 2013-14. AboutIndia, OECD said the country ‘has the opportunity to achieve faster and more inclusive growth’. India needs to improve fiscal consolidation by shifting from subsidies to investment in social and physical infrastructure, control inflation and improve financial stability, it added. Further, the grouping said the country should improve “infrastructure, simplify labour laws and pursue tax reforms”.
According to OECD, even though emerging economies as a group would continue to grow much faster than the advanced economies, the forecast are uneven across countries.


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