India should go ahead with greater capital account convertibility, a top Finance Ministry official has said.
The time has come for greater capital account convertibility, Dr Kaushik Basu, Chief Economic Advisor to the Finance Ministry said here today.
India has to keep opening up so that its enterprises can take advantage of that, Dr Basu said at the 81st annual general meeting of ICC India.
At the same time, he noted that one had to be careful about the exchange rate implications while going ahead with greater capital account convertibility.
He also underscored the need for big policy reforms in the next six months. Inflation may rear its head in the next 12-18 months if economic reforms are not undertaken urgently, he added.
Dr Basu also said that current level of rupee was not unnatural.