According to the research firm, the partial unclogging of domestic policy logjam, focus on public investments in infrastructure, fall in food inflation and lower fuel prices along with improving income growth is likely strengthen aggregate demand.
"India's economic growth as measured by Gross Value Added (GVA) at basic prices to grow by 8.4 per cent in financial year 2016," D&B said in a research note.
A sectoral analysis shows that the demand for automobiles across the categories is expected to receive a boost, on the back of the expected economic recovery in this fiscal.
Meanwhile, the much awaited participation from Real Estate Investment Trusts (REITs) and Alternative Investment Funds (AIF) is expected to aid investments in the real estate sector. Tier II and Tier III cities are expected to drive demand for residential real estate.
Moreover, likely revival in economic activity during FY16 is expected to support consumption of various consumer products and drive the growth story of the Indian retail sector, the report added.