HONG KONG: India's central bank chief Raghuram Rajan said Asia´s third-largest economy is being hampered by a drop in public and private investments, but held out hope that strong foreign capital flows will 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 percent 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.