• Dr. Ravi Ahuja

Currency Convertibility refers to the freedom to convert currency into other internationally accepted currencies and vice versa. It is a two step process-Current Account Convertibility and Capital Account Convertibility. India has Current Account Convertibility from 1994 when India accepted Article VIII of IMF’s Articles of Agreement in August, 1994. Tarapore Committee-I formed in 1997 recommended a 3 year timeframe, which was put back due to Asian Currency Crisis, Tara pore Committee-II proposed a 5 year frame ending by 2010-11.India have negative current account deficit which is at 2.6% of GDP in 2010-11 which is marginally improved from 2009-10 figure of 2.8% of GDP(Mid Year Review-Ministry of Finance), while Capital Account has a surplus 4.5% of GDP (Mid Year Review-Ministry of Finance) , Still there is a large dissent over Fuller Capital Account Convertibility amongst various sectors. Some of the pre-conditions for Capital Account Convertibility are Maintenance of Inflation rates, Reduction in Non-Performing Assets, Attainment of Debt-Servicing ratio, Low Fiscal Deficit, Current Account Deficit and Cash reserve ratio. This paper tries to discover what are the Pros and Cons of Implementing FCAC and whether India can afford it at this moment.

INDIA STATUS -CAPITAL ACCOUNT CONVERTIBILITY

"INDIA STATUS -CAPITAL ACCOUNT CONVERTIBILITY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 1, page no.1283-1289, January-2019, Available :http://www.jetir.org/papers/JETIR1901F75.pdf

"INDIA STATUS -CAPITAL ACCOUNT CONVERTIBILITY", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 1, page no. pp1283-1289, January-2019, Available at : http://www.jetir.org/papers/JETIR1901F75.pdf