"We revise down our FY16 GDP growth forecast to 7.3 percent from 7.7 percent," Standard Chartered said in a note.
It attributed the cut to weaker growth data for Q1, external headwinds and slower agriculture growth.
Its Japanese peer Nomura has also cut its forecast by 0.2 percentage points to 7.8 percent for the fiscal, attributing the slower-than-expected Q1 numbers of 7 percent, in real terms to lower net indirect taxes.
Pitching for a rate cut from the Reserve Bank at the earliest, Bank of America-Merrill Lynch also highlighted that poor rains can dent its forecast by 0.30 percent.
"We have grown more confident of our standing call that lending rate cuts hold the key to growth... although we expect the RBI to cut rate on September 29 and February, time is running out for lending rate cuts, with the busy industrial season barely a month away," it added.

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