Capital Account Convertibility is one of the ways to integrate a nation's economy with the global economy, to deepen and integrate financial markets, to increase access to global savings, to discipline domestic policy makers and to allow greater freedom to individual decision-making and proliferation of Information Technology. India must meet these pre-conditions before implementing full convertibility of rupee on Capital Account. The inevitable globalization process has set in motion a mega change, which has motivated …showed first 75 words of 1945 total…

…showed last 75 words of 1945 total…free currency policy is just one of them. Therefore, India can go ahead with full CAC very cautiously. We should treat liberalization of capital account as a process and not as a single event and it has to be embarked upon cautiously as part of overall economic reforms in our country as well as our assessment of emerging scenario elsewhere. Unless pre-conditions are met, the full CAC cannot make the elephant dance. Reference: ICFAI Press