The Reserve Bank also lowered the growth projection for current fiscal year recently to 6.6 per cent, and hiked the inflation forecast to 4.8 per cent in view of slowdown in economic activity as well as stubborn food prices.

The recent growth number for the second fiscal quarter, has put a dent on the optimism towards India as experts question what lies ahead.

The Asian Development Bank has lowered India's economic growth forecast for the current financial year to 6.5% from 7%, citing weaker private investment and housing demand. The bank also revised its growth forecast for the next fiscal year.

The decision to revise the GDP growth projections lower came after India's GDP growth for the September period fell to the lowest level in seven quarters.

The Reserve Bank of India has held interest rate steady since February last year, while a sharper-than-anticipated slowdown in India’s growth has made RBI’s task tougher.

India's economy is expected to have slowed in the July-September quarter, growing at the slowest pace in 18 months, weighed down by weak urban consumption following a rise in food prices despite an increase in government spending.

The lower forecast is mainly due to India’s lower-than-expected Q2 growth, driven by damp manufacturing and lagging government spending, the ADB said

The Asian Development Bank (ADB) on Wednesday lowered India's economic growth forecast to 6.5% for the current financial year due to lower-than-expected growth in private investment and housing demand.

The Asian Development Bank (ADB) on Wednesday lowered India's economic growth forecast to 6.5 per cent for the current financial year from its earlier estimate of 7 per cent due to lower-than-expected growth in private investment and housing demand.