The Citigroup has revised upwards its GDP growth forecast for FY'10 from 5.5 per cent to 6.8 per cent.
It has also upped its GDP forecast for FY'11 from 6.6 per cent to 7.8 per cent.
"The upward revision is primarily due to higher investment growth where we believe the worst is over and the stage is now set for some recovery," Citigroup said in a report on India's economy.
Investment is likely to be a key driver of growth, the report said, revising its investment growth figure from 4 per cent to 9 per cent in FY'10 and from 5.4 per cent to 11.3 per cent in FY'11.
"A stable policical environment, an improvement in investment climate, both domestic and global, and thawing credit markets bode well for investments," the report said.
However, any further delay in monsoons would have implications for GDP, inflation and the proposed food security act, it said.
