The International Monetary fund (IMF) has lowered India's growth forecast for FY16 to 7.3% from its July forecast of 7.5% due to slowdown in emerging markets, primarily reflecting weakness in some large emerging economies and oil-exporting countries.

But, growth is expected to bounce back to 7.5% in 2016-17 on the back of reforms, a pick-up in investment and lower commodity prices, it said in its latest World Economic Outlook (WEO). Growth prospects in emerging markets and developing economies vary across countries and regions.

IMF said, Indian economy would  be the fastest growing large economy, as China's economic expansion is projected to come down to 6.8% in 2015 from 7.3% in the previous year.

IMF also projects global the global economy to grow at 3.1% this year against 3.4% last year. Growth is expected to rebound to 3.6% next year.

According to IMF, external conditions are becoming more difficult for most emerging economies. The prospect of rising U.S. interest rates and a stronger dollar has already contributed to higher financing costs for some borrowers, including emerging and developing economies.

The growth slowdown in China is so far in line with forecasts, its cross-border repercussions appear larger than previously envisaged, including through weaker commodity prices and reduced imports.

The projected rebound in growth in emerging market and developing economies in 2016 therefore reflects not a general recovery, but mostly a less deep recession or a partial normalization of conditions in countries in economic distress.

Many emerging markets have increased their resilience to external shocks. Thanks to increased exchange rate flexibility, higher foreign exchange reserves, increased reliance on foreign direct investment flows and domestic-currency external financing, and generally stronger policy frameworks, many countries are now in a stronger position to manage heightened volatility.