International brokerage firm, Goldman Sachs has said in a new report that it expects the Indian economy to grow at the rate of 6.4 per cent for the current fiscal year.

The brokerage said that the upcoming general elections would result in higher government spending, lower interest rates and more action on policy reforms. It expects the higher spending, lower rates and more reforms to help increase the exports form the country and drive investments during the current financial year.

"We reiterate our above-consensus GDP growth forecast of 6.4 per cent. The key to an improvement in activity is a pick-up in the investment cycle," the company wrote in the report.

The UN expects the Indian economy to grow at 6.4 per cent during 2013 while the Asian Development Bank has said that the Indian economy will record a growth rate of reach 6 per cent in the current fiscal year. Leading research agency, Crisil expects the economy to grow at 6 per cent, which is is lower than an earlier estimate of 6.4 per cent for the Indian economy.

The estimates form the Indian government shows that it is aiming at a recording a growth of between 6.1 and 6.7 per cent.