Full convertibility of Rupee |
Capital account convertibility of the Indian Rupee is a distant dream because macro-economic parameters have to be stable before it is implemented. The low current account deficit should be sustained and the fiscal deficit needs to be contained. Jayant Sinha, minister of state for finance, said India should embrace capital account convertibility if it has to become a top global economy. Reserve Bank of India Governor Raghuram Rajan sees full capital account convertibility in a few years. Capital account convertibility means the freedom to convert Rupees into foreign currency and back for capital transactions. Indian has current account convertibility but not capital account convertibility.
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