International rating agency, Standard & Poor's (S&P) has revised its forecast for Indian economic growth to 5.5 per cent for 2012 due to low rainfall in the country as well as international factors like continuing debt crisis in the Eurozone and a slow recovery in the US.

“The lack of monsoon rains has affected India, for which agriculture still forms a substantial part of the economy. Additionally, the more cautious investor sentiment globally has seen potential investors become more critical of India's policy and infrastructure shortcomings,” S&P said.

According to the latest data released by the government, the Indian economy grew at 5.5 per cent in April-June 2012 compared to 8 per cent in the sale quarter of the previous year. In the first quarter of this financial year, the growth recorded fell to its lowest level in nine years at 5.3 per cent. The S&P forecast indicates that the economic growth rate is expected to remain low in the coming quarters.

S&P said that the Asia-Pacific region is seeing the impacts of the continuing uncertainties in the global economy. The agency reduced its gross domestic product (GDP) growth forecast for all the major economies in the region.