IMF projected that Indian economic growth rate would slip to 7.9% in 2008 from 9.2% in the previous year, reports agency sources.
In 2009, the Indian economy will expand at slightly higher rate of 8%, stated IMF`s World Economic Outlook.
The report further said weak export demand and higher financing costs will dampen the growth of private investment, the key driver of growth.
The impact of global financial turmoil following US sub-prime crisis, the cost of which is estimated at one trillion dollars by the IMF, will be less in case of emerging economies in the East as compared to developed nations.
Growth in consumer prices, which has been rising alarmingly in the recent past in India is expected to moderate to 5.2% in 2008 and 4% in 2009. It was 6.4% in 2007.
IMF growth projections for India are in line with other think tanks, including the Prime Minister`s Economic Advisory Council that expected the economic growth rate to moderate to 8.5% during 2008-09 against projections of 8.7% for the previous fiscal.
IMF also projected slowdown in growth rate in emerging Asia to 7.5% in 2008 from a high of 9.1% in the previous year. In case of China, the GDP growth rate is expected to slip to 9.3% from 11.4% in 2007.