According to the British brokerage, HSB India is likely to be become the 3rd largest economy by the year 2028.
Social capital is "insufficient" in the country and spending on aspects like health and education "is not just desirable for its (India's) own sake, but is also central to economic growth and political stability", it said.
"In over the next ten years, India will likely surpass Germany and Japan to become the world’s third-largest economy in nominal USD and the transition will happen even more quickly on a PPP (purchasing power parity) basis," its economists said in a note.
Presently, India's GDP is around USD 2.3 trillion, and in the global rankings, it marks its fifth position. The brokerage said that growth rate will be lower in FY18 as compared to the year-ago's 7.1 percent due to the introduction of Goods and Services Tax (GST), will recover from next year in a sustainable fashion.
"There are limits to one-off reforms. India needs to create an ecosystem of continuous change," it said.