India's economy to grow 6.4% next year : OECD

The Organisation for Economic Cooperation and Development (OECD) has raised India's growth forecast for next year, citing a pickup in investment because of the improved political situation that is a result of the PM Modi led BJP coming to power with a majority that will enable it to undertake reforms. In releasing its forecast ahead of the November G-20 summit in Brisbane, the OECD outlook says improved business sentiment resulting from reduced political uncertainty, deregulation and the government commitment to cut red tape, should boost growth. India could be within striking distance of China by 2016, in terms of pace of growth, but the central bank will have to continue its fight against inflation. The OECD also called for subsidy reforms and projected that the global economy will expand 3.3% in 2014.