India needs to grow at 8% a year to beat China: Barclays

India's economy needs to grow 8% a year in order to overtake China as the largest contributor to the global economy, Barclays Plc estimated, a scenario that requires much more investment, especially in traditional sectors.

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India should focus investment in areas like mining, utilities, transport and storage sectors that have stronger spillover effects on the broader economy, Rahul Bajoria, a senior economist at Barclays, wrote in a note Tuesday.

Investments in those sectors have "taken a back seat" in recent years in favor of newer industries, such as telecommunications and the digital sector, he said. Capacity constraints in traditional sectors mean that more investment in those areas are now needed, especially from the government, he said.