The Organisation for Economic Co-operation and Development (OECD) in its latest report has given a thumbs-up for India and China’s economic growth and said two countries will lead the worldwide growth.

The OECD countries economy will grow at 2.7 percent in 2010, more than the 1.9 percent predicted in November, said the Paris-based group. It also hailed non-members China and India’s growth, “the global economy will expand 4.6 percent this year and 4.5 percent in 2011, compared with an average of 3.7 percent during the decade through 2006,” the report added.

The OECD mentioned that India, China and Brazil will expand 8.3 percent 11 percent, 6.5 percent respectively in 2010. But for the year 2011, India’s growth has been projected to grow at 8.5 percent, while China and Brazil’s growth has been lowered to 9.7 percent and 5 percent respectively.

The report also pondered on the risks to the Indian and Chinese economies. “A boom-bust scenario cannot be ruled out, requiring a much stronger tightening of monetary policy in some non-OECD countries, including China and India, to counter inflationary pressures and reduce the risk of asset-price bubbles,” the report said.

Read the entire report here, here and here.