According to a new report by United Nations, the Indian economy will grow at the rate of just below 8 per cent in 2012 and 2013 due to growing risks from the problems in Europe and the U. S.

The report titled, "World Economic Situation and Prospects 2012" on Tuesday said that the country's economy is estimated to expand at a pace similar to 2011 in the following two years. It projected a rate of 7.7 per cent in 2012 and 7.9 per cent in 2013.

The Indian government's estimate for gross domestic product growth is 7 per cent, which is below the earlier projection of 8.5 per cent amid continuing uncertainties in the global economy.

The report said that South Asia's economies including, India, Pakistan, Nepal, Iran, Bangladesh and Sri Lanka are likely to grow by 6.7 per cent in 2012 and 6.9 per cent in 2013. The rates are higher than 6.5 per cent in 2011 and blamed economic situation in India for the lower average of economic growth.

"Robust domestic demand will sustain this increase, but the economic slowdown in India, where growth declined from 9 per cent in 2010 to about 7.6 per cent in 2011, brings down the regional average," it said.