India is likely to witness further moderation in economic growth with the Gross Domestic Product (GDP) slipping to 8.4 per cent in 2008, says a World Bank report.
India's economic growth rate, however, was likely to marginally improve to 8.5 per cent in 2009, said the World Bank's 'Global Economic Development: Technology Diffusion in the Developing World' report released in London on Wednesday.
Having touched a high of 9.4 per cent in 2006, India's GDP growth rate moderated to 9 per cent in 2007 and is expected to slip further in the current year, the report said.
In case of China, the report added, economic growth rate too will slip from 11.3 per cent in 2007 to 10.8 per cent in 2008 and further to 10.5 per cent a year later.
The modest easing of GDP growth rate in India, the report said: "Reflects a firming ...(of) Indian import demand that yielded a negative export position, further underpinned by strong appreciation of the rupee."
However, the rupee appreciation mainly on account of increased capital flows has helped India keeping under check inflation, which touched 3 per cent in November, breaching a five-year low of Wholesale Price Index mark, the report said.
In addition to the impact of slowdown in the US economy, the upcoming risks, which can have a bearing on India's growth, include spiralling crude oil and commodity prices, the report added.