Where are India’s growth drivers?

Overview

The idea that the Indian economy’s base growth rate is at least 8 per cent has been discredited as the evidence mounts that a credit bubble – not deep structural changes – powered the last four years of exceptional GDP growth. Nonetheless, several sectors are still expected to turn in a relatively strong performance thanks to domestic demand, the primary driver of economic activity.

Even as the economy slows, shortages of goods and services in a range of sectors are evidence of...