Citing new potential threats in emerging economies, the International Monetary Fund (IMF) on Tuesday slashed its growth projection for Indian economy in FY2013-14 from the 5.8 per cent to 5.6 per cent.

The IMF said Indian economy was facing slower credit growth and the US Fed's plans to unwind its massive stimulus program would aggravate a further slowdown in emerging markets, including India.

The global lender also noted that old risks, such as the impact of economic crisis in the eurozone are still persistent.

In an update of its World Economic Outlook, the IMF said, "While old risks remain, new risks have emerged, including the possibility of a longer growth slowdown in emerging market economies."

The growth projection of 5.8 per cent was made by the IMF in April. Although the IMF has slashed its projection for India's growth, the government still expects the economy to grow at a rate of more than 6 per cent in the current financial year.

During the last financial year, Indian economy's growth slipped to 5 per cent, its lowest level in the past ten years. In June this year alone, the rupee slipped 4.9 per cent making it the worst player among 78 international currencies. On Monday this week, the India currency slipped to its record low of 61.21 against the US dollar.

Foreign institutional investors (FIIs) are withdrawing their cash out of emerging markets like India in order to invest in the US and other growing markets in order to get higher returns. In June alone, FIIs withdrew $4.2 billion and $850 million from Indian bonds and equity markets, respectively.