Against the backdrop of a stable government which is stepping up the reform process, Asia's third biggest economy is poised for faster growth, shrugging off a slowdown in fellow emerging markets.
The International Monetary Fund (IMF) on Tuesday revised upwards its estimate for Indian economic growth in 2014-15 to 5.6 per cent from 5.4 per cent projected earlier as business and investor confidence revives after a solid mandate in the Lok Sabha elections which resulted in the more growth and investor friendly BJP returning to power.
"India has recovered from its relative slump, and, thanks in part to policy and a renewal of confidence, growth is expected to exceed 5% again", the IMF said.
India's economy grew at the fastest clip in more than two years as GDP expanded by 5.7 per cent in the April-June 2014 quarter.
The 'Modi factor' is expected to greatly benefit India's economic story as the country's charismatic Prime Minister embarks on structural reforms including altering labour market regulations, reviving manufacturing, and making it easier for companies to do business in India by simplifying regulatory procedures.
"In India, growth is expected to increase in the rest of 2014 and 2015, as exports and investment continue to pick up and more than offset the effect of an unfavourable monsoon on agricultural growth earlier in the year", the IMF added.