economics medium Fill in the Blank

The Tarapore Committee was constituted by the RBI to lay down a roadmap for fuller ___ account convertibility in India.

  1. milk
  2. capital
  3. government spending (or autonomous expenditure)
  4. rivalrous (or unregulated common)

Answer: capital

The S.S. Tarapore Committee (1997 and 2006) outlined the prerequisites and timeline for moving towards fuller capital account convertibility (FCAC). It recommended building adequate forex reserves, lowering the fiscal deficit, and reducing inflation before fully opening the capital account to global markets.

Topic Indian Economy - Concepts
Exam Relevance UPSC Prelims, Banking, SSC
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