No signs of growth stabilizing in India yet: OECD

The Indian economy continues to face the headwinds from possible tapering of quantitative easing policy in the US, leading to sharp depreciation in rupee and ballooning Current Account Deficit (CAD), said Paris-based think-tank Organisation for Economic Cooperation and Development (OECD).

According to a PTI report, OECD said while Chinese economy seems to be stabilizing, along with the Philippines and Singapore, the growth in the Indian economy may continue to be weak in the near-term.

The organization pointed that US Fed's decision to wind up asset purchase programme, also described as easy money regime, resulted in high volatility in currencies of emerging nations, especially India, the PTI report said.

"Emerging Asian economies, which ran large current account deficits and more susceptible to macroeconomic risks of capital outflows, such as India and Indonesia bore the brunt of the financial turmoil. In addition, global oil prices will remain volatile should the tension in the Middle-east persists and this could cloud the inflationary outlook in the near-term," OECD said.

Dion Global Solutions Ltd.

Story first published: Tuesday, September 10, 2013, 9:10 [IST]
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