How Much of India's Growth Is Productivity? An Exact Törnqvist Replication of Penn World Table 11.0 and the Sensitivity of TFP to the Capital Share, 1951–2023

I decompose India's real GDP growth into the contributions of capital, labour and total factor productivity (TFP) using the Penn World Table 11.0, released in 2025. A Törnqvist decomposition with capital services, hours worked and human capital reproduces the table's own TFP series for 1971 to 2023 to within 1.7 millionths of a log point per year, which pins down exactly what the published index assumes. Over 1992 to 2023 GDP grew 6.01% a year: capital contributed 3.30 points, labour 1.80 points and TFP 0.91 points, or 15.2% of growth. TFP was negative in the 1970s (minus 1.15% a year) and in 2020 to 2023 (minus 0.61%), and between 1.03% and 1.30% in the three sub-periods from 1992 to 2019. China's TFP growth over 1992 to 2023 was 3.18% a year, while Indonesia, Thailand, the Philippines and Sri Lanka were at 0.14% to 0.22%. I prove two exact results: Diewert's quadratic lemma, which justifies the average-share index, and a linear sensitivity rule under which TFP growth falls by the capital-labour growth gap for each unit rise in the assumed capital share. Because India's capital stock grew 6.95 points a year faster than effective labour in 2004 to 2011, TFP for that period ranges from 2.48% to 1.09% as the share moves from 0.3 to 0.5, so the labour-share measurement is the main source of uncertainty.