With no nasty surprises, India's economy may grow by more than 7% thanks to investments in physical and digital infrastructure, according to Chief Economic Advisor V. Anantha Nageswaran.

"The omens are good for us to continue the steady growth rate" for the next decade, Nageswaran said at a National Council of Applied Economic Research event in New Delhi on Wednesday.

In March, annual retail inflation fell to a five-month low of 4.85 percent, aided by a decline in fuel prices. "We don't see, at the moment, scope for nasty upside surprises (on inflation)," Nageswaran stated.

"There can always be scenarios in geopolitics that can cause inflation to be more than we expect, but at this point the baseline scenario is that inflation gradually converges to the mid-point of the target range."

The monetary policy committee is tasked to keep inflation within a target range of 2% to 6%, however the Reserve Bank of India prefers to see it at 4% before decreasing interest rates. Nageswaran stated that the Indian economy was better positioned than before to pursue "non-inflationary" growth.

He anticipates economic growth to reach 8% in the previous fiscal year, which ended on March 31, and 7% in the current fiscal year, which begins on April 1.