While New Delhi's initiative on reform has boosted the stock market, economists are divided over how much the policy overhaul will help the real economy in the near term. Even if New Delhi manages to push through liberalization measures it's not clear whether foreign investors will take advantage of greater access to industries such as aviation, retail and insurance given India's other looming uncertainties.
"All these so-called reforms are more of a euphoria driven thing rather than an actual impact on the economy," Arora said.
India's economy grew 5.5 percent during the June quarter, after expanding by 5.3 percent in the March quarter. This is the slowest pace since the global recession, which dragged India's economic growth down to 3.5 percent for the January to March quarter of 2009.