Industrial growth, particularly manufacturing, and services segments, would be critical for India to get back on the high-growth path, the survey said. The revival of these two sectors would also be key for job creation, it added.

The rate of growth of both manufacturing and services sectors was over 9% during the high growth period of the country, the survey noted. "For growth to be strong, the contribution from the industry sector and in particular from manufacturing, has to increase in the years to come."

"The survey has rightly stressed on the urgent need to restore the domestic macroeconomic balances in place… the investment cycle needs to be kick-started as it has weighed on the overall level of economic activity," said Anubhuti Sahay, senior economist, Standard Chartered Bank.

While the government has taken several steps to boost overall sentiment and investment, the survey said it is critical to take sector-specific measures covering micro, small, medium and large industries in the formal as well as informal sector.

The National Manufacturing Policy (NMP), which was approved by the government in 2011, is expected to enhance the share of manufacturing in India's GDP (gross domestic product) to 25% and add at least 100 million jobs.

Apart from a weak investment climate, industrial sector's performance remained subdued due to infrastructure bottlenecks, the survey said.