As Malaysia-based low-cost carrier AirAsia gets set for takeoff in India, CEO Tony Fernandes says there couldn't have been a better time to launch a new business in the country.

"There's a wave of optimism tied to the new government. If there's ever great timing to start a new business in India I think we picked it," Fernandes told CNBC on the sidelines of the World Economic Forum in Manila. "People are confident and feel this is a new beginning - that's 50 percent of the battle."

"A government that wants to listen and hear the views to make business easier, is always a good thing," Fernandes added. AirAsia has tied up with India's Tata Group to launch AirAsia India - the first India-based airline with foreign investment- in the next few months.

The Narendra Modi-led Bharatiya Janata Party (BJP) government's thumping election victory has driven a palpable turnaround in economic sentiment among business leaders both in and outside India.

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The BJP is seen as pro-business and reform-minded - a welcome change from the ousted Congress-led government that presided over the worst economic slowdown since the 1980s. Asia's third-largest economy grew 4.7 percent in the final quarter of 2013, down from its near-9 percent expansion in fiscal year 2011.

Jaspal Bindra, chief executive, Asia of Standard Chartered, a U.K. bank that has a strong presence in India, says the new leadership is "fantastic" for the bank's operations.

"It's going to be hugely positive from a business and economic point of view. Compared with where India has been in terms of reforms in the last few years, this is going to be a leap frog up," he said.

Translating optimism to investment

After years of sluggish investment - a key factor behind the continued growth slowdown - increased optimism is precisely what India's economy needs.

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Corporate executives say it won't be long before private-sector investment ramps up.

"We should begin to see changes about 6 months from now. We're already beginning to see the influx of money from overseas and that's a big positive - but the real traction will happen when projects which have been stuck on the ground for too long really get unblocked," said Daljit Singh, President of Fortis Healthcare - one of India's largest hospital chains.

If Modi is able to push through initiatives like a "single-window" for faster project approvals during his first few months in office it would provide a clear signal to the corporate sector that he means business, Singh noted. Delays in environmental and regulatory clearances have slowed down investments.