India’s economy will likely to grow 6.7% in FY18: OECD

Owing to temporary impact of the Goods and Services Tax (GST) and demonetisation, the Organisation for Economic Co-operation and Development said India's growth for the current financial year expected to be at a slower pace than China.

"In India, the transitory effects of demonetisation and of the implementation of the Goods and Services Tax (GST) have led to a downward revision in 2017 growth projections, while business investment has remained weak. In the longer run, the GST is expected to boost investment, productivity and growth," ..productivity and growth," it said in a country assessment.

Lower than its estimate of 7.3% in June, OECD said India's economy will likely to grow 6.7% in FY18. However, China's economy gets a 0.2% lift from its earlier assessment to 6.8% for 2017. The Paris-based group of 35 advanced and emerging countries cut its forecast for India's growth to 7.2% in FY19 from 7.7% estimated earlier. China is predicted to grow 6.6% in 2018.

Global GDP growth is projected to pick up to about 3.5% in 2017 and 3.7% 2018, higher than in 2016 but still below historical norms, OECD said. Growth is seen higher in the euro area, Russia, Japan and Canada. The forecast for the US is unchanged at 2.1% for 2017 and 2.4% for 2018. The group warned against complacency in the face of stronger short-term momentum.