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Q. What is the objective behind the spate of measures to ease
forex controls?
A. The objective is to remove forex controls to meet normal requirements
of individuals as well as corporates. Foreign-exchange transactions should
be hassle free and should not require RBI permission as far as possible.
This objective has largely been achieved.
Q. Are these measures aimed at eventually attaining capital-account
convertibility?
A. Capital-account convertibility is a desirable goal. Our immediate
goal is capital-account convertibility for business and investment requirements
abroad. This should help promote a two-way relationship between our corporates
and individuals and those operating abroad. India should not only be a
recipient, but also a provider of technology and capital abroad.
Q. Can we expect this trend to continue?
A. Yes. Our fundamentals are strong and we would like to continue
the process.
-Vivek Law
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The Party Machine
CURRENT
ISSUE JANUARY 27, 2003
Forget
Indian blue-chips, you can now buy shares of the biggest companies in the
world. At the Pravasi Bharatiya Divas function on January 10, Union Finance
Minister Jaswant Singh announced a series of measures aimed at easing capital
controls. Since November 2002, the RBI has come up with a series of similar
measures. With foreign-exchange reserves in excess of $70 billion, RBI Governor
Bimal Jalan says this is just the beginning.
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