India will grow at 6.4% during 2013-17: OECD

Indian growth rate is expected to recover from the current lows but will underperform the rates for South East Asia in the next five-year period, says a new study by the OECD.

The Southeast Asian Economic Outlook 2013 notes that emerging Asia (including Asean, China and India) will record a 7.4 per cent growth rate in the years 2013-17. India will be growing in the same period at 6.4 per cent. "Weakening growth momentum for Emerging Asia as a whole is largely due to weakening in the two big giants (China and India) in the region", the report released on Sunday noted.

The OECD projection is one of the first long term growth estimate that's rerating the numbers for India. The Indian Planning Commission has estimated that India could grow upwards of 8 per cent in the same period that coincides with the 12th Five Year Plan.

The growth rate for the region is however a full one per cent lower than that achieved by the region in the period between 2000-07, the years before the global crisis. This region has worked as a growth driver for the world since the global financial meltdown in 2008-09.

According to the OECD report smaller economies like Laos and Cambodia are expected to top the growth rate among the Southeast Asian countries with a growth rate of 7 per cent and above. Among the larger Asean economies, Indonesia is expected to perform best logging an average of 6.4 per cent over 2013-17, which will be significantly above its average after the 1997 Asian crisis and "equal to that recorded in the two decades prior to that crisis.

This favourable outlook for Indonesia reflects the significant improvement in the country's standing with international investors and the ambitious infrastructure investment and economic reforms".

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