In current fiscal, Indian economy grew by 7 percent in first quarter and 7.4 percent in second quarter.

The official GDP data for the third quarter of the current fiscal is scheduled to be released on Monday.

"Domestic demand witnessed during the festival season is expected to support growth in the third quarter, even as global headwinds have had an adverse impact on manufacturing and exports," Pant said.

The onus of reviving the investment cycle under such circumstances has therefore fallen on the government, which it did by increasing government capex by Rs 70,000 crore over the in the 2015-16 budget, Ind-Ra said.

The Indian economy is expected to grow between 7-7.5 percent in the current fiscal. Last fiscal, it grew 7.2 percent.

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