New York/New Delhi, Aug 9 (IANS): Boston-based equity investment major Boston Company Friday said India's economic fundamentals such as ongoing economic reforms and infrastructure development are ripe for higher equities gains in the future.

A white paper, released by the investment firm titled 'Uncovering Opportunities in Indian Equities', outlined that currently investors are wary of India's growth story due to issues such as a fragmented government, power outages, poor roads and deteriorating margins in many business sectors.

"The noise surrounding India's current economic flaws could cause investors to miss the key advantages that the country possesses as well as its bright future prospects," said Andrea M. Clark, portfolio strategist, The Boston Company.

The white paper noted that infrastructure development, favourable demographics and a recent slew of economic reform could drive Indian equities higher in the time to come.

"Most importantly, India boasts a large working-age population that will drive expansion through personal consumption. Unlike China and many developed nations, India is not grappling with an ageing population that will need substantial societal support," Clark said.

The report also pointed out that there are additional potential drivers of economic expansion, notably urbanisation, infrastructure and transportation development coupled with improving rural wages and potential trade agreements to improve exports.

Another factor for investors to consider, according to the report, is the approaching national election in 2014, ahead of which most political parties in the current coalition government appear to be working towards necessary economic reforms.

"India's gross domestic product is at a five-year low, but the country appears poised for a rebound," Clark added.

"Considering the government's agenda for reform, Indian equities have become increasingly attractive for the long-term investor."

India's gross domestic product (GDP) for the fiscal 2012-13 grew at only five percent which was the decade's slowest growth rate led by a downfall in the manufacturing sector output which increased by 2.6 percent.

Recently, the federal government also initiated a slew of economic reforms to attract more foreign investments in various sectors like multi-brand retail and telecom.