The Indian economy will grow at a slower pace of 7-7.5 per cent next year against the 8.0 per cent growth projected for the current fiscal, prime minister Manmohan Singh has said.
 
The prime minister attributed the slack growth to a general fall in consumption and said it can be reversed to a certain extent through increased investments in the infrastructure sector.

''Due to the current financial crisis, growth rate may come down somewhat next year, but I am still confident that we will be able to achieve a rate of between 7-7.5 per cent,'' he said addressing the Indian community in Oman.

He called upon Oman's industrialists and finance companies to invest surplus funds in key infrastructure in India to derive mutual benefit. Indian infrastructure financing needs are estimated to be $500 billion in the next five years, he added.

The Centre for Monitoring Indian Economy (CMIE), however, is more bullish and estimates the Indian economy to grow at a minimum 8.0 per cent.

The International Monetary Fund's World Economic Outlook Update has pegged India' economic growth at a much lower 6.3 per cent for next year.

Industrial production growth in the country for August stood at 1.3 per cent, while the infrastructure recorded a modest growth at 5.1 per cent in September.

Most blame low industrial growth on a tight money policy followed by the Reserve Bank of India as its key tool to fight inflation and commercial banks have now agreed to slash lending rates and increase money supply following an easing of RBI policies.