With global financial crisis directly affecting banking system and financial markets in India, Asian Development Bank (ADB) has scaled down growth projections for Indian economy to seven per cent in 2008 from 7.4 per cent forecast earlier.
Besides, ADB estimated Indian economy to further slow down to 6.5 per cent in the coming calendar year from its earlier projection of seven per cent.
"India, South Asia's most dynamic economy in recent years, is reeling from the direct effect of the global financial crisis on its banking systems and financial markets. The growth projection for India has been revised down to seven per cent in 2008 and 6.5 per cent in 2009, from 9 per cent in 2007," ADB said.
On Tuesday, the World Bank projected Indian economy to grow by 6.3 per cent in 2008 and 5.8 per cent in 2009.
Indian economy grew by 7.8 per cent in the first half of this fiscal against 9.3 per cent a year ago.
For the whole of the last fiscal, the economy grew by nine per cent and various projections for 2008-09 peg the economy to grow anywhere in the range of 7-8 per cent.
In its special note on developing Asia's Prospects in the Global Slowdown, ADB however, retained the growth projections for Pakistan economy at eight per cent for 2008.
But, projection for 2009 was lowered to 3.8 per cent from earlier estimate of 4.5 per cent.
ADB also reviewed downwards forecast for Chinese economy to single digit growth of 9.5 per cent for this calendar year from earlier 10 per cent.
For 2009, assessment for Chinese economy was lowered to 8.2 per cent from 9.5 per cent.
