To Be or Not to Be : Is India Prepared to Undertake Fuller Capital Account Convertibility?

This paper aims to show how India is not yet ready to implement and fully undertake Capital Account Convertibility (CAC) in the wake of economic globalisation. It deals with certain problems relating to CAC, especially in the context of developing countries. It looks at the three main conditions laid down by the Tarapore Committee, comparing them to India’s current macroeconomic position and finally, draws from the experience and lessons to be learnt from other developing countries who have implemented or attempted to undertake full convertibility