India moving towards greater convertibility: RBI deputy governor
India is moving towards greater convertibility in its markets, according to Reserve Bank of India (RBI) deputy governor T Rabi Sankar. Full capital account convertibility opens up the country’s markets to global players including investors, businesses and trade partners. This allows easy access to capital for different businesses and sectors, positively impacting a nation’s economy. Sankar further stated that efforts to get the country included in global bond indexes and a move towards placing government securities under global custodians, once implemented, will encourage debt flows in the future. As per HSBC analysts, India’s inclusion in global indexes could materialise in 2022, bringing potential inflows of between USD 30 billion and USD 40 billion. Despite the move towards greater convertibility, Sankar cautioned of the risks involved including sudden reversals of flows among others.