Indian economy will likely enjoy a modest recovery in next financial year even in absence of the government's major policy initiatives, a fresh report by Deutsche Bank claimed.

The report by the foreign investment bank acknowledged that the government's major policy initiatives would provide a great support to India's economic recovery in 2013, but added that it could happen even without major initiatives.

The report said, "Recovery (in 2013) would be supported greatly if major initiatives were to boost investment and consumption, but it could take place in any case, in our view."

It added that consumption will likely remain strong, and labour wages in rural as well as urban areas will rise by 15-20 per cent in 2013 even if the economy doesn't receive any major policy support.

Indian economy, which had been growing at an annual rate of nearly 8-9 per cent before the global financial crisis of 2008, suffered a decline in growth to a nine-year low of 6.5 per cent last year.

In the April to June quarter of current financial year, the country's economic growth slipped to 5.5 per cent. In the July to September quarter, it slipped further to 5.3 per cent.

In a bid to provide a much-needed boost to the economy, the government announced a slew of reforms, including opening of multi-brand retail, aviation and broadcasting sectors to foreign retailers.