News Summary

• India has the potential to grow at an average of 8% in real terms for the next two decades.
• But only if we diagnose the constraints correctly.
• Countries that sustained 8% plus growth for a decade, such as Japan, South Korea and China, did not wait for domestic demand to mature.
• India Inc often wrings its hands over demand.
• But India’s medium- and long-term bottlenecks are overwhelmingly on the supply side.
• Hit the right first pin—supply expansion—and demand will fall in sequence.