NEW DELHI - INDIAN economic growth is likely to slow to 7.7 per cent in the current financial year due to a cooling global economy and high inflation, a government panel said in a report released on Wednesday.

The forecast from the Indian prime minister's Economic Advisory Council is a sharp downwards revision from its earlier prediction of 8.5 per cent growth in the 2008-2009 fiscal year.

Last month, India's central bank also cut its growth forecast for the current financial year to eight per cent - the slowest since 2004 - from a range of 8.0 to 8.5 per cent.

In June the Organisation for Economic Cooperation and Development (OECD) said India, Asia's third-largest economy, was set for 7.8 per cent growth.

India's economy grew by nine percent in the last financial year to March, down from the previous year's 9.6 per cent. -- AFP