With strong forex reserves, is India ready for capital account convertibility?
For full capital account convertibility (CAC), you need fiscal stability and strong forex reserves. As of now, we have huge forex reserves, but there is no fiscal discipline. Full-blown CAC may not be an immediate possibility given this situation. Are you planning to launch any new debt schemes in the near future? We pretty much cover the entire gamut of debt offering, but in future we would look at launching a balanced fund where risk is managed. However, we would have to wait for an upturn in interest rates to launch such a product with investments in floating interest rate instruments.
