While most economists argue that the country cannot achieve an 8 per cent growth on a sustained basis without major reforms and improvement in infrastructure and other parameters, Oxus Research chief Surjit Bhalla's of the view there's no question of growth slipping below 8 per cent. Based on analysis of India's growth over the past, his calculations show labour will contribute around 1.3 per cent to annual growth and capital/investment to another 3.6 per cent. Another 3 per cent annual growth will come from education, or the impact on productivity of an increasingly educated labour force. Anything over this, in the form of reforms, he says, will be a bonus.
