Global rating agency Moody’s on Thursday said that it had expected Indian economy to grow by a 'little more than 5.5%' during July to September, the data for which will be released next week, roughly the same as in the first two quarters, but substantially below where GDP was a year ago.

It also said the initial bounce in investor sentiment following the big ticket reforms announcements in September and October has faded, and 'the reality of India’s deep-seated structural problems has begun to set in.'

“Our outlook is for a steady upturn in growth across the coming quarters before growth finally hits potential by the second half of 2014,” a report by Moody’s Analytics said.

The government reforms have materially lowered risk but will do little to support economic growth over the next two years.

“Our medium term outlook remains unchanged. Growth will stabilise at 5.5% to 6% across the second half of 2012, and there is little on the horizon to lift growth from current rates,” it said.