According to the 'India 2020 - Economy Outlook' launched by Dun & Bradstreet in association with Life Insurance Company (LIC), the Indian economy is expected to recover from the current phase of slowdown by FY14 and is expected to gather pace by FY'15.
India is likely to realise its potential and achieve a growth rate of over 8.3 per cent during FY14 to FY20, it said.
"We believe that India has the potential to get back on a high growth trajectory on the back of increased infrastructure spending, strong growth in services sector and healthy consumption demand," Dun & Bradstreet India Senior Economist Arun Singh said.
Singh further noted that the future performance of the Indian economy will depend more heavily on reinforcing domestic drivers of growth.
According to the global research firm the policy landscape will have to act as a catalyst to remove the bottlenecks and create a conducive environment for investment to pick up pace and industry to thrive which will in turn boost consumption.
"Government's effort is expected to boost the private sector and improve the overall demand scenario. We also expect stability in the external environment and recovery in global growth which will aid India's growth journey during the forthcoming years," Singh said.
The country's economic growth hit a decade low of 5 per cent in the last fiscal on account of poor performance in the farm, manufacturing and mining sectors.
Meanwhile, the central bank, in its First Quarter Review of Monetary Policy on July 30, had cut the growth projection for 2013-14 to 5.5 percent from an earlier estimate of 5.7 percent. The government in February estimated 6.5 percent growth for 2013-14.