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Factories running 30% below capacity: Rajan

He however held out hope that strong foreign capital flows will help rectify this weakness

Reuters  |  Hong Kong 

The Reserve Bank of India’s (RBI) governor, Raghuram Rajan, said the economy was being hampered by a drop in public and private investments but held out hope that strong foreign capital flows would help rectify this weakness. Weak capital investment has been a hurdle in India’s quest to realise its growth potential and with factories running 30 per cent below capacity, private companies are in no rush to invest in new projects. “On the growth front, the central concern is with investments,” said Rajan, who was speaking at a business event in Hong Kong on Friday. ...

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First Published: Sat, November 21 2015. 00:58 IST