New Delhi, April 5 -- As we enter a new fiscal year, both the government and industry bodies such as the Confederation of Indian Industry (CII) and Federation of Indian Chambers of Commerce and Industry (Ficci) would do well to focus on what truly drives sustained growth in India: Is it the demand or supply side of the Indian economy?

In ten-pin bowling, a strike happens only when the head pin is hit. Economic strategy is no different. If India wants to trigger a virtuous cycle of 8% growth, it must hit the right first pin. While demand matters, it is not the head pin. Supply-side expansion is that head pin.

As I argue in India@100, India has the potential to grow at an average of 8% in real terms for the next two decades. But only if w...