India Entering The Investment Bull Cycle, Says Natixis' Trinh Nguyen

India is entering the investment bull cycle, Nguyen said, noting increased participation of domestic capital in equities and infrastructure spending. "In the past, infra financing was via banks, now it's broadening so that risk is not concentrated. Urbanisation, population growth, industrialisation puts a lot of pressure."

Corporate leverage ratio in India has declined and balance sheets have improved, she said. "The corporate debt-to-GDP ratio is very low, only about 55%, compared to China's 165%. Other countries in East Asia also have high debt."

The government has managed to streamline revenue collection, according to her. "We still want tax revenue to increase, but streamlining is important to tap more fiscal space."

Though India's demand for energy and commodities will rise, it will be able to source them cheaply as competitor China's growth slows on a structural level, Nguyen said. She expects oil prices to stay below the $100 per barrel mark.

She also said that government incentives to promote manufacturing will help in exports and a low base level would add a fillip to the jump.

"India needs to grow its manufacturing share (in GDP). It is easier for foreign portfolio investments than going and building a factory. The growth will be gradual and can be accelerated," she said.