Responding to India's comparison to China, he said people tend to put them in the same bucket because they are growing Asian countries, but they are totally different. The most important difference is demographics.
India was a very young country, people in the working age would continue to increase in the next 20 to 30 years, whereas the worker population in China was already peaking.
The demographics has a big impact on the savings rate, growth and everything else. India could accelerate growth, whereas to maintain growth in China was going to be difficult, according to Rajah.
He also pointed out that India's corporate sector was quite dominated by private sector, whereas in China, the state-owned enterprises were very important.
In the long-term, an efficient private sector was very important, he said.
The market mechanism was a better allocator of capital than someone sitting in the government, added Rajah.
The Franklin India Fund's total net assets stood at more than USD 1.64 billion as of May 31 this year.
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