About 75 percent of the market players and investors polled expect India's economic growth to be in the range of 6.5-7.5 percent over the next 12-18 months.

The findings were part of the poll of 110 market participants, including some of India's largest investors, intermediaries and issuers, conducted by Moody's Investors Service earlier this month.

Of those polled, 35 percent saw external shocks as the 'greatest challenge facing the economy', up from just 10 percent in the previous May 2015 poll.

In contrast, 32 percent felt there is a sluggish reform momentum and 19 percent saw infrastructure constraints, down from 47 percent and 38 percent, respectively, in May 2015.

Compared with the last poll in May 2015, only 14 percent of participants now expect growth to accelerate to between 7.5-8.5 percent, down from 36 per cent previously.

As for revival of private sector investment, Moody's suggested that the government should take key reform initiatives and pass GST and land acquisition laws.

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