The present government's effort to expedite major reforms and their successful implementation could push India's gross domestic product to over $4.5 trillion by FY20, a Dun & Bradstreet report said on Friday.
According to the global business information, knowledge and insight provider, India is likely to achieve an average growth rate of around 7.5 per cent during FY15-FY20.
"These are exciting times for India with the ushering in of a new majority government at the Centre after three decades," Dun & Bradstreet India Senior Economist Arun Singh said adding that the government has hitherto relayed the right signals, which has only heightened the sense of exuberance amongst India Inc.
According to D&B, the Indian economy is expected to recover from the current phase of slowdown towards the second half of FY15 and gather pace by FY16.
For the first quarter of this fiscal year the country is expected to clock a GDP growth rate of around 5.2 per cent and the FY15 GDP is likely to be 5.5 per cent.
"India is likely to achieve a higher average growth rate of around 7.5 per cent during FY15-FY20, spurred by large infrastructure investment by the government along with increased investment activity by the private sector," Singh said.
Some of the risk factors for the said outlook are poor monsoon, structural bottlenecks and geo-politoical situation, Singh said.
"The present government's incremental effort to expedite major reforms and its successful implementation should push India's GDP (at market prices) to more than $4.5 trillion by FY20," he added.
The 'India 2020: Economy Outlook' report evaluates the growth of the Indian economy in the next six years (leading to 2020) based on its strengths and weaknesses.
The report contains five sections -- forecasts for key macroeconomic variables, growth prospects for some of the Indian states, potential growth drivers of the economy, major policy initiatives that would facilitate India's economic journey and challenges to growth during the next six years.