India to tread cautiously on rupee convertibility

India on Wednesday said it would exercise caution in embracing fuller rupee float since the gradual approach toward liberalising the foreign exchange regime has paid in the past.

Davos, Jan 24: India on Wednesday said it would exercise
caution in embracing fuller rupee float since the gradual
approach toward liberalising the foreign exchange regime has
paid in the past.

"We have not been taking risky steps but still the
gradual liberalisation in convertibility has been happening,"
Planning Commission Deputy Chairman Montek Singh Ahluwalia
said at the annual WEF meeting here today.

The gradual process of reforms has worked quite well in
India, he said.

Reserve Bank of India-appointed Tarapore Committee had
last year submitted its report on the issue and among other
things recommended a five year time frame (2006-2011) to move
toward fuller rupee float in three phases.

Addressing the session on the prospects for the world
economy in 2007, the Planning Commission Deputy Chairman said
the developed world has not been debating enough to see how
the technology has made the world flat with the result that
developing countries are getting increased opportunities.

For India, the concerns relate to making the economic
growth all-inclusive besides improving the physical
infrastructure. "We are trying to get the investment in
infrastructure," he said at the meeting, coordinated by the
CII and the India brand equity foundation for over 100member
Indian delegation.

Bureau Report

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