RBI chief says investment growth needs to pick up

The Reserve Bank of India (RBI) Governor Raghuram Rajan said India's macroeconomic indicators are improving and inflation has been coming down consistent with the central bank's forecast, but the economy needs investment growth to pick up.

Rajan, however, said Friday's industrial output and inflation data suggested that recovery was "uneven."

Output from mines, utilities and factories grew by a much slower-than-expected 0.5 per cent year-on-year, government data showed on Friday, down from June's revised 3.9 percent rise.

Retail inflation , which the RBI tracks for setting lending rates, edged down marginally to 7.8 per cent in August from 7.96 per cent a month earlier.

(Reuters)