The legendary cricketer named hosts Australia, Virat Kohli-led India and West Indies as the three possible contenders for the trophy.
The ICC World T20 is set to start with the qualifiers from October 18 onwards.
Here's what Lara went on to say.
ICC World T20
Key details regarding the ICC World T20
Eight teams have already qualified for the ICC World T20 to be held in Australia.
Four teams are set to join the main event from the qualifiers.
The Super 12 will see two groups in the form of Group 1 and Group 2.
West Indies, Pakistan, Australia and New Zealand are in Group 1.
Afghanistan, England, India and South Africa are in Group 2.
Lara picks three teams for the ICC World T20
"I think India is going to be a force to reckon with. Australia at home, it's not going to be an easy WT20 for anyone. Australia is going to be worried about India and the Windies. WI are going to be worried about everybody because of their inconsistency sometimes. So it's going to be a great World Cup to look at," Lara told ESPNCricinfo.
India and Australia have done well in T20Is
India have been playing well in T20Is since the ICC World Cup 2019.