'Tech adoption can help boost productivity'

NEW DELHI: Finance minister Nirmala Sitharaman on Thursday said rapid technology advancement can help increase productivity in economy, which is a key focus for policymakers.

"Across the board, one significant question that has remained relevant has been on productivity not catching up with our ambition to grow faster. We invest money, we do a lot of identifying sectors where money should go... Technology adoption can multiply productivity faster," she said during an interaction with students at the Institute of Economic Growth .

FM also underlined how there was much greater emphasis on capital expenditure post-Covid , with states too seeking to step it up, realising that this can boost growth. "All states are now understanding the importance of capital expenditure because the multiplier effect is much higher," she said, while asserting that all institutions, including educational institutions and other agencies, need to brace themselves to deal with pandemics in the future.