Given the slower growth figures posted by the domestic economy for the first two quarters in the current fiscal year, the Modi government is reportedly looking to sharply lower its economic forecasts for 2015-16.

The trimmed growth estimates are likely to be announced in the Mid-Year Economic Review to be tabled before Parliament on 18 December.

The government is likely to revise downwards its gross domestic product (GDP) growth forecasts to 7.3-7.77% against a previous projection of 8.1-8.5%, sources told Business Standard.

"The earlier official estimates of 8.1-8.5 per cent will be lowered. There have been a number of factors like deficient monsoon, low private consumption generally and rural consumption specifically, and slowdown in agriculture," said a senior government official.

Citing poor monsoon rainfall and slow pace of reforms in the country, many agencies have now cut their growth forecasts for Indian economy after projecting higher growth rates earlier.

In October, the International Monetary fund (IMF) had cut its forecast for India's GDP growth to 7.3% for 2015-16 from the earlier estimate of 7.5% made in July. Similarly, global rating agency Fitch Ratings had revised down its forecast for India's GDP growth to 7.5% from a previous estimate of 7.8%.

The Reserve Bank of India (RBI) had also downgraded its outlook for India's GDP growth to 7.4% in the current fiscal year.

India's GDP grew 7% in the April-June quarter as against 6.7% in the same period last year. But in the second quarter, the GDP rose by 7.4%, taking the average in the first half of the current fiscal year to 7.2% compared to 7.5% in the corresponding period a year earlier.