The rating agency expects Asia's third biggest economy to expand by 5.2 to 5.5 per cent in FY 2014-15.
According to the Central Statistics Office (CSO), India's economic growth may have stood at 4.9 per cent in FY 2013-14 after growth slumped to a decade-low of 4.5 per cent in the previous fiscal.
"It is expected the economy in general will improve in FY15, albeit gradually on the premise that a strong government would be in place after the elections which will reduce uncertainty in business environment and focus on reviving growth ", Care Ratings said in a report.
A stable and reform oriented government may reduce policy uncertainty, contributing to an improved investment and business climate, auguring well for the country's economic outlook.
Care Ratings also warned of an upside risk to inflation as the El Nino condition may hurt monsoons, crimping agricultural production and thereby raising prices of food items.
The rating agency expects average consumer inflation at 7.5 per cent in FY 2014-15.