India's economic woes have not gone out of hand in the wake of the slip in the GDP growth - the lowest in nearly 9 years - but there could be trouble if the Eurozone crisis is not quickly contained and financial stability in Europe restored.
Ahead of the G-20 Summit of developed and developing countries being attended by Prime Minister Manmohan Singh among other world leaders, Deputy Chairman of Planning Commission Montek Singh Ahluwalia said India will be "lucky" if it achieves around 7 per cent growth rate this financial year.
The country's economic growth rate slipped to 5.3 per cent in the fourth quarter of 2011-12, lowest in nearly 9 years due to poor performance of the manufacturing and farm sectors.
Ways to fix the Eurozone crisis to prevent a contagion effect, which could hurt emerging economies like India and China, is on top of the agenda for G-20 leaders who will be meeting in Los Cabos over the next two days.
Ahluwalia said the general assessment at the ongoing deliberations is that the global economy is "extremely weak" and it could sow the seeds for a second financial crisis in four years if the Eurozone crisis is not handled effectively.
"We have not reached a situation where there is a sudden outflow of funds. We don't need any support from IMF. We are not looking for anything like that," he said.
"We will be lucky to have six-and-a-half per cent to seven per cent growth which is lower than the long-term target," Ahluwalia, who is the sherpa assisting Prime Minister Singh at the summit, said.
The G-20 accounts for 80 per cent of the global GDP.