Raghuram Rajan, the Chief Economic Advisor has said that the union government is looking at various possibilities of raising limits on foreign direct investment ceiling in various sectors in the country in order to boost inflow of funds into the Indian economy.

“But really, what we need is FDI in areas where we can benefit from technology. Technology in logistics is what we begin with in retail... If logistics chains can help us bring produce from the farmer to the table top in a much more effective way with less inefficiency less wastage that would a boon for everybody, the consumer, the farmer and the country as a whole,” he said.

While speaking on the side-lines of the ADB annual meet, he said that the higher level of investment by western manufacturers and domestic retail firms would help boost the economy. The government gave its approval for IKEA's proposal to invest Rs. 10,500 crore for setting up home furnishing stores in the country. It will be the largest FDI investment in single brand retailer in the country.

Mr Rajan has said that he expects the Indian economy to grow at the rate of 6 per cent this financial year.