"We expect GDP (Gross Domestic Product) growth to hit 5.1 percent in the three months to June. However, this is still well short of potential GDP growth, which is currently around 6 percent, but could easily lift towards 7 percent with some modest economic reforms," says Glenn Levine, senior economist, Moody's Analytics.

The ratings agency further said that the country under the new government was in early stages of a cyclical upturn.

Moody's further said that it expected the second quarter GDP figures due later this week to show the beginning of cyclical improvement for the Indian economy.

The risk measurement and management company pointed out that the country's new Prime Minister Narendra Modi has taken office at an opportune time when the economy should grow automatically around five percent.

"Even without much government help, the economy should grow by around 5 percent this year and close to 6 percent in 2015,” he said.

Asia's third largest economy has witnessed sub-five percent economic growth rates in over two decades time in the last two years.

Last week, even most of the top global brokerage firms such as Deutsche Bank, Barclays, Nomura and Religare have raised their growth estimates for the Indian economy for the quarter ended June 30 and FY16.

These brokerages expect India's GDP to grow at 5.6-6 percent in April-June from the corresponding period.

Latest News  from Business News Desk