She expects the economy to expand 6 percent year-on-year in the fiscal year to March 2015, higher than 5.5 percent estimated by the Reserve Bank of India and faster than a near decade-low of 4.7 percent last year.
India's new prime minister has promised to make it easier to do business through speedier clearances and stable tax policies, giving investors in Asia's third-largest economy hope of a rosier future after years of low growth and high inflation.
That hope has led to a marked increase in foreign capital inflows to the country - even before the election - making Indian shares the best performers in Asia this year.
Even though Modi is yet to launch big-bang reforms needed to propel the economy back to a near double-digit annual growth, his three-month-old administration has received a big thumbs-up from Indian corporates.
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An overwhelming majority of CEOs in two polls, published by two national dailies on Thursday, credited Modi for reviving business confidence.
Aiding the sentiment, the global economy is showing signs of strengthening and is expected to lift overseas demand for Indian merchandise and underpin the recovery.
"We believe economy is definitely on a path of improvement," said Shubhada Rao, chief economist at Yes Bank in Mumbai. "For the full year, we could see a 60 to 80 basis points improvement from the last year."
However, without an overhaul of India's strained public finances, stringent land acquisition laws, chaotic tax regime and rigid labor rules, economists say, a broader and sustained economic revival will likely remain elusive.
Modi was expected to replicate his success as head of Gujarat state in breaking the political logjam in New Delhi that had blocked efforts to push these structural changes.
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But a lack of majority in the Rajya Sabha means some of these measures cannot be carried out without bipartisan support. That has already delayed plans to increase foreign ownership caps in the insurance and pensions sector and revamp labor laws.