The largest national flag at Rajiv Chowk on March 7, 2014 in New Delhi, India.

India's economic growth may be slowing down, but the country could stage a turnaround to expand by more than 7% next year, according to the latest forecasts by the Asian Development Bank.

In the April-to-June quarter, Asia's third-largest economy grew 5% year-over-year — a six-year low pace. That prompted several economists to warn that the country's growth rate could fall below 6% this year.

ADB also downgraded its growth projections for India. In a report released Wednesday, the Manila-based development bank said India is expected to grow by 6.5% in the current fiscal year — down from its previous forecast of 7.2%. For the next fiscal year, that growth rate could rebound to 7.2%, slightly lower than the earlier forecast of 7.3%, said ADB.

"This year's downward revision seems to be mainly driven by overall broader slowing down of domestic consumption, investments, manufacturing production and service sector production," Yasuyuki Sawada, ADB's chief economist, told CNBC's "Street Signs Asia."