Focus stimulus package on raising capex, says Rangarajan

He also made a case for recapitalisation of PSBs, so that they could provide more funding to the private sector

The economic stimulus package being contemplated by the government should focus on raising of capital expenditure, to catalyse private investment, said former Reserve Bank governor C Rangarajan.

At an Assocham conference here, he estimated 6.5 per cent economic growth in 2017-18, from 7.1 per cent the previous year and lower than the 6.75-7.5 per cent range in the official Economic Survey.

He also made a case for recapitalisation of public sector banks (PSBs), so that they could provide more funding to the private sector.

Even to achieve 6.5 per cent growth, the economy would need to grow by at least