It also said that the GST (goods and services tax) which is expected to be rolled out by July 2017, will further boost the economy by simplifying the indirect tax structure, and eliminating the cascading effect of taxes on customers and make doing business easier in the country.

Hailing the Centre's ambitious Make in India initiative, the report said that it has provided robust support to India's manufacturing sector, backed by domestic demand and many regulatory reforms. It has helped India become the sixth largest manufacturing economy in the world in 2016.

Reforms like ‘Power for All', ‘Smart Cities', ‘Skill India' and ‘Startup India' are expected to work in tandem with ‘Make in India' to help the country achieve the goal of becoming a manufacturing hub, it added.

"All these radical reforms are acting as enablers for boosting the domestic environment which in turn is improving the country's stature globally," further said the report. "The major reforms from the Government will continue to boost investor sentiment and India's outlook across the world."

It also complemented the Government's view of promoting innovation and entrepreneurship through reforms like Startup India and Skill India, to equip the young workforce to face the changing global economic environment and technological disruption.

While the pace of India's radical reforms may vary, the direction is firmly set toward higher growth. The economy will continue to benefit from significant progress in trade, proactive policy actions and robust external buffers.

END