According to the global financial services major, after the BJP's ‘historic’ election victory on May 16, hope for structural reforms has gone up.
"The hope for structural reform which can increase India's growth potential stems partly from the track record of the new Prime Minister-elect, Narendra Modi, who was the Chief Minister of one of India's fastest growing states, Gujarat, for 12 years, and partly from the BJP's election campaign platform of economic development," Goldman Sachs said.
"We have taken the view that a new government will be able to undertake previously stalled reforms which can help in increasing economic growth," Goldman Sachs Economists Tushar Poddar and Vishal Vaibhaw said.
According to Goldman Sachs, India's gross domestic product growth is likely to increase from 4.6 per cent in FY14 to 6.5 per cent in FY16, driven by an improvement in investment demand and stronger exports.
In FY15, GDP growth is expected to be at 5.5 per cent with downside risks due to the possibility of a less-than-normal
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