India’s growth prospects in the near term are still weak and is facing financial turmoil triggered by possible tapering of quantitative easing policy in the US, according to Paris-based think-tank OECD.
The projection comes against the backdrop of slowing growth in India as well as rupee falling sharply amid high level of current account deficit (CAD).The Organisation for Economic Cooperation and Development (OECD) on Monday said that near term growth prospects are mixed for emerging Asian economies.
There are signs of growth stabilisation for China and a more positive outlook for the Philippines and Singapore, “while still weak growth prospects for India”, it said.
As per the grouping’s latest Asian Business Cycle Indicators (ABCIs), the key imminent downside risk facing Southeast Asia, China and India is the turmoil in the financial markets, triggered by the prospects of tapering of quantitative easing (QE) policy in the United States.