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Q66
(IAS/2007)
Economy › External Sector & Trade › Currency convertibility regimes
Answer Verified
Tarapore Committee was associated with which one of the following?
Result
Your answer:
—
·
Correct:
B
Explanation
The Tarapore Committee is primarily associated with fuller capital account convertibility (CAC) of the Indian rupee. The committee (initially in 1997 and revisited later) outlined a roadmap, sequencing and macroeconomic preconditions required before moving to full CAC, explicitly recommending measures such as reducing the fiscal deficit to around 3.5% of GDP and lowering public debt as prerequisites for fuller convertibility [1]. The 2006 report is formally titled “Report of the Committee on Fuller Capital Account Convertibility” and provides detailed recommendations on timing, sequencing and regulatory/supervisory issues for implementing fuller CAC in India. Therefore option 2 is the correct choice.
Sources
- [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > Limitations > p. 499
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