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Economy booster package should stimulate pvt investment: Ex-RBI chief

He said the fall in growth rate was also accompanied by a fall in investment rate

IANS  |  New Delhi 

C Rangarajan
Former RBI Governor C Rangarajan

Former Governor C. on Friday said the package the government is looking at to revive the economy should be partly to raise and look at problems preventing from rising.

"The package, in my opinion, should be partly to raise of the government, but suited in a way in which it will stimulate private investments," he told reporters on the sidelines of the 10th International Gold Summit by Assocham.

He said the fall in growth rate was also accompanied by a fall in investment rate.

"More critically, it is the private investment rate that has fallen. In fact, public expenditure on capital has shown some slight rise. Therefore, the most important thing is to address the problems that may be preventing private investment from rising," said.

He suggested that two things can be done. "There are a number of stalled projects. The low-hanging fruit is to ensure that these stalled projects are activated. Secondly, the banking system needs to be recapitalised so that it can provide additional credit for investment as well."

First Published: Fri, September 22 2017. 14:08 IST
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