Indian economy will slightly perform better this year as the productivity level of capital may remain high, former governor of RBI C Rangarajan said on Saturday.
“Though the growth rate of economy will be somewhere around 7.5%, the productivity of capital is less than investment growth and should catch up,” Rangarajan told reporters on the sidelines of the 24th session of the India Art History Congress at Kumaraguru College of Technology in Coimbatore on Saturday. The rate of agriculture growth is expected to be lower this fiscal too, he said.
On raising FDI cap, Rangarajan said there could be 100% FDI in certain sectors, but there should be restrictions in some cases, particularly defence.
Listing out the positives, he said more foreign capital should not just add to finances, but contribute to use of newer technologies.