Irrational exuberance, the local variant, has people believing that India is set to see a string of over 9% growth years. I see it as wishful thinking.
The current growth spurt is due to an accidental coming together of various factors. Growth in cellular access/coverage (no one really predicted it would be this big) and aviation sectors have contributed substantially by improving efficiency and thus freeing up funds for reinvesting, while also helping to keep inflation low.
The growth in those two sectors isn't going to be spectacular anymore.
India needs a new well to tap, and there isn't any around. One project that could have helped is a massive road building and upgrading. But that has slowly receded into the background.
Real estate & realty sectors cannot be the drivers. They are more the results than the reasons for further growth. There are a lot of minor growth helpers - like building of metros in a number of cities, port/airport privatization, new oil/gas exploration policy, SEZs, UMPP - but they either take a long time to have an impact or only have a mild/indirect impact.
Two other areas could still help revive growth later this year or early next year. The handing out of nationwide GSM licenses, as well possible roll-out of 3G/WiMax, could squeeze further efficiencies. There is also talk of FTA-type agreements with ASEAN, the U.S and E.U. If they all come into effect, we could still see another growth spurt.
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