Such a Long Journey: India’s Opening of its Capital Account

Chaired by Professor Robin Jeffrey, Convener of the ANU College of Asia and the Pacific Presented by the Australia South Asia Research Centre, Research School of Pacific & Asian Studies, ANU College of Asia & the Pacific. In this lecture, Suman K. Bery looked at the steps India needs to take before it can fulfill its potential and become one of the world's great economic powers. He focused on India’s management of its exchange rate and monetary policy, including the opening of its capital account and the management of its fiscal rate and reserves. Mr Bery argued that this is the right time for India to adopt convertibility of the rupee on the capital account and enhance economic growth prospects, because of its current large foreign exchange reserves. A paper by Lal, Bery & Pant, The Real Exchange Rate, Fiscal Deficits and Capital Flows, is available on request from [email protected]