India’s economy is likely to lose pace even as China and the US are expected to see good expansion in the coming months, says Paris-based think tank OECD.

The latest assessment comes amid concerns that spiralling inflation and hawkish monetary regime could hurt India’s economic growth.

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In view of its continuing robust growth, India is expected to be the world’s largest economy by 2050, surpassing China and the US, a Citi report said.

China to overtake US
“China should overtake the US to become the largest economy in the world by 2020, then be overtaken by India by 2050,” financial services group Citi said the report.

India’s infrastructure has to be improved
Noting that India’s infrastructure has to be improved, Citi said the country needs to relax its “hostile attitude towards FDI”, if it is to reap the benefits of rapid cross-border technology transfer that China has benefited from so greatly.

The International Monetary Fund has pegged its growth forecast for the global economy higher at 4.4% while retaining the projection for India at 8.4% for 2011.

The multilateral lender, however, cautioned that downside risks to global recovery remain “elevated”

India is projected to clock a growth of 8% in 2012
The upward revision in growth estimate has come on the back of “stronger-than-expected activity in the second half of 2010 as well as new policy initiatives in the US that will boost activity this year,” IMF said. In calendar 2012, India is projected to clock a growth of 8%.

India’s economy is primarily driven by domestic sources of growth, unlike other emerging economies which rely heavily on exports. This helped India’s economy during the crisis, growth was sustained and in fact, India will be leading global growth for at least the next two years.

The Indian rupee continued to trade weaker in afternoon session on Monday weighed by the euro’s losses versus major currenices but a reversal in the declining trend in local shares helped the rupee retreat from its lows.

At 3:10 p.m., the partially convertible rupee was at 44.30/31 per dollar, off the day’s low of 44.4150, but weaker than 44.10/11 at close on Friday when it had risen to 43.95, its highest since Aug. 29, 2008.

Source Economic Times.

India and China, besides some developed countries, may face economic downturn in the coming months, according to an analysis by OECD.

Global economic growth is slowing
It also said the global economic growth is slowing down. The latest reading is in contrast to the bullish outlook for fast-growing economies such as India, which tackled the global financial meltdown better than many other countries.

The Organisation for Economic Cooperation and Development (OECD)’s latest Composite Leading Indicators (CLIs) released today show that global economic expansion is slowing down.

“The outlook given by the CLIs for Canada, France, Italy, the United Kingdom, Brazil, China and India points strongly to a downturn,” OECD said in a statement.

Reasonable to expect Indian economy to slow
Interestingly, a few days ago, Finance Minister Pranab Mukherjee had said that in the short term it is reasonable to expect the national economy to go back to the “robust growth path of around 9 per cent average”.

GDP growth of 7.4% 2009-10
India’s economic growth rate was 7.4 per cent in 2009-10 and is projected to be over 8.5 per cent for the year ending March 31, 2011. From over 9 per cent average for three years till 2007-08, the growth slipped to 6.7 per cent in 2008-09 because of the global economic crisis that began in 2008.

India may overtake China as the world’s fastest growing major economy by 2015, as the South Asian nation doubles infrastructure investment and adds six-fold more workers than its northern neighbor, Morgan Stanley said.

India to to Top China as Fastest Growing Economy by 2015.

India’s growth may hit 9.5 %
India’s growth may accelerate to 9.5 percent between 2011 to 2015, Morgan Stanley economist Chetan Ahya said in an interview from Singapore today. India’s gross domestic product has expanded at an average 7.1 percent over the decade through the third quarter of 2009, compared with 9.1 percent in China, which surpassed Japan as the second-largest economy last quarter.

$1 Trillion to be spent in India
Prime Minister Manmohan Singh’s government plans to double spending on roads, ports and power plants to $1 trillion in the five years to 2017 to improve the quality of infrastructure that’s ranked below war-ravaged Ivory Coast and Sri Lanka. An increasing number of people joining the workforce and rising salaries will also help boost growth, Ahya said. Thi is sure to offer a huge boost to property and real estate in India.

Within the next two years, India will start matching China’s growth rate, Ahya said. After that “there will be a clear divergence of growth rates between the two countries,” he said.

India will add 136 Million workers by 2020
Japan’s nominal gross domestic product for the second quarter totaled $1.288 trillion, less than China’s $1.337 trillion, the Japanese Cabinet Office said today. Japan remained bigger in the first half of 2010, the government agency said. India will add 136 million workers, more than the population of Japan, by 2020 compared with 23 million that China will add, Ahya said. That will help the nation tap into a rising pool of savings and help finance infrastructure projects, he said.

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The International Monetary Fund on Thursday raised India’s growth forecast for 2010 to 9.5%.

Stating that favourable financing conditions and robust corporate profits will accelerate economic expansion. The multilateral lender hiked its growth projection from the earlier estimate of 8.8% it made in April. Recently, PM Manmohan Singh had said the country’s economy is expected to grow by 8.5% for the financial year ending March 31, 2011. In the last fiscal, the economy expanded 7.4%.

New Delhi has emerged as the most expensive city for expatriates in terms of cost of living, according to a survey by global HR consultancy Mercer said. However, the cost of living in Indian cities still happens to be cheaper than 84 cities in other parts of the world, the ‘2010 Cost of Living Survey’, which covers 214 such locations across five continents, stated.

Angola’s Luanda topped global rankings as the most expensive city to live in. Indian cities figure somewhere in the middle of the list as the cost of living in the country is on the rise due to escalating property prices and a steadily improving economic climate.

“New Delhi (85) is India’s most expensive city, followed by Mumbai (89) and Bangalore (190) with Chennai and Kolkata ranked 195th and 207th on the global list, respectively. New York was used as the base city for the index, and all the cities were compared against it.