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15 Apr 2015
India favours full Rupee convertibility
FXStreet (Mumbai) - India needs to move towards full capital account convertibility to become a leading global economy, Minister of State for Finance Jayant Sinha told Reuters.
India's currency, the rupee, has been convertible on the current account since 1994 and it can be changed freely into foreign currency for trade-related expenses and similar purposes. However, it cannot be converted freely for business activities such as overseas assets' purchases and other capital expenditures.
Rupee full convertibility is expected to support rapid growth enabling higher investment and higher efficiency in the financial sector.
Sinha quoted, "If we have to be among the top three-four economies in the world, we have to make it possible for our capital markets to be broader and deeper, and for that to happen capital account convertibility also becomes important."
India's currency, the rupee, has been convertible on the current account since 1994 and it can be changed freely into foreign currency for trade-related expenses and similar purposes. However, it cannot be converted freely for business activities such as overseas assets' purchases and other capital expenditures.
Rupee full convertibility is expected to support rapid growth enabling higher investment and higher efficiency in the financial sector.
Sinha quoted, "If we have to be among the top three-four economies in the world, we have to make it possible for our capital markets to be broader and deeper, and for that to happen capital account convertibility also becomes important."