The rapid depreciation in the Indian rupee, sluggish economic activity and deterioration in consumer confidence have dashed hopes for a turnaround in Asia's third largest economy. However, according to Credit Suisse, it's not all gloom and doom for the South Asian giant.
"We have not thrown in the towel. In some ways, the current situation reminds us of when virtually everyone had given up hope of ever seeing wholesale price inflation fall and the central bank cutting policy rates further. Sometimes patience is indeed a virtue," Robert Prior-Wandesforde, director, Asia Economics at Credit Suisse wrote in a new report.
Inflationary pressures have been easing this year, with the Wholesale Price Index (WPI), the country's main inflation gauge, rising just 4.86 percent in June compared with the near 8 percent levels seen in 2012. This has enabled the Reserve Bank of India (RBI) to cut interest rates three times this year.
Credit Suisse which forecasts gross domestic product (GDP) growth of 6 percent for the current fiscal year ended March 2014, on the higher side of market expectations, said its optimism lies in four main factors.
(Read more: Why market watchers aren't giving up on India)