Are there any imminent threats of outflow of capital, like the situation in South East Asia?
Not, at all, if I imagine that we move towards that goal given our present conditions, which are extremely positive in terms of growth, inflation, fiscal deficit, whatever indicator one takes. But positions can always change, so I dont see this capital outflow problem happening right now. In fact, NRIs are investing a lot of money here because there is foreign investment interest here. Therefore when everything is fine there is no problem, but whether the macro-economic situation will remain as it is or not or if there are some uncertainties, then obviously there can be capital outflows. Therefore, safeguards are essential and then the economy doesn’t plunge, the way it happened in certain Latin American and certain Asian economies. How to do this is the matter for the panel or group to consider. Q: What impact could it have on the foreign exchange market and how do you see the rupee-dollar equation getting affected, even if it is a phased move towards full capital account convertibili
