New Delhi: India wants to move to full convertibility of the rupee and is taking gradual steps toward it, Finance Minister Pranab Mukherjee said Friday.
"Full convertibility of the rupee is our ultimate destination," he said, replying to lawmakers' queries in the lower house of parliament. "However, it is felt that it is not time to jump to that destination at one go now."
The government and the Reserve Bank of India have adopted a calibrated approach on the issue, "considering the risks involved in opening the Indian economy fully by allowing complete convertibility of the rupee," Mukherjee said.
An appropriate policy on full convertibility depends on the state of the economy, the level of reserves, quality of existing regulations, exchange-rate management and likely persistence of foreign-currency inflows, he added.
Bureau Report
First Published: Friday, March 12, 2010, 15:29