India’s economic growth is poised to inch up 4.9 per cent in 2014 and is expected to gain momentum with a decline in “political uncertainty” after the general elections, although rising bad loans would weigh on recovery, Paris-based think-tank OECD said today. The estimate by the Organisation for Economic Cooperation and Development (OECD) for 2014 is higher than 4.5 per cent growth projected for 2013. India’s GDP is expected to pick up further momentum and grow 5.9 per cent in 2015, according to OECD’s latest economic outlook report. The Indian economy has slowed and growth plummeted to a decade-low of 4.5 per cent in 2012-13.
“Growth is expected to gather momentum. Investment should recover as projects cleared by the Cabinet Committee on Investment are implemented and political uncertainty declines after the May 2014 general elections,” OECD said.
It said that the world economy is projected to grow 3.4 per cent this year, lower than earlier expected, with multiple risks including financial tensions in some emerging markets impacting overall prospects.