will full convertability of INR help india economy?

i guess the time has come for gradually making INR fully convertible. however before that happens banks need to have sophisticated risk management systems in place. at the moment banks lack systems which can handle the extreme volatility in USD/INR, something that is inevitable once our local currency becomes fully convertible. besides, for a country growing steadily at 9% and targeting double digit growth in the next few years, trying to avoid full convertibility is not a good sign. we have seen developed economies grow despite their currencies being fully convertible. we have seen the equity markets grow in india. investors from tier 2 cities and towns are pumping money into the markets. investors aware of the risks associated with equity markets are increasing, thanks to extensive media coverage and easy availability of research reports.

i think relevance of INR is growing across the globe in line with Indian growth story. making it fully convertible will further fuel growth.

Full convertibility is like full float. Till now we had only limited float. Now the value of the currency will depict it's true value when in full float, if they ever do it. Moreover Indians can exploit more opportunities abroad without government intervention under full float regime.

Yes the full convertability of INR would help the Indian economy as the economy would be saved from the heavy speculation in the dollar. As most of the exports in India has an exposure in the dollars and with speculative movements in the dollar exporters ahve faced huge losses and it has been difficult for the Indian companies to sustain in this global.

Once the INR gets full convertible it becomes easy for a company to have an exposure in the currency of the country to which it is exporting rather than having a cross currency exposure. As there are many currencies which are pretty stable so the exporters could concentrate on the operations rather than being afraid of the speculative aspect on the foreign currency.

As India's economic growth is on the exports sales, so we need a rather stable foreign currency exposure.

Yes, full convertability of Indian Rupee will help indian economy a lot as the value of INR is not disturbed by RBI much. also the indian compnies are going global and investmets and profits are flowing in and out.  the carry trade advantage will definetly help INR a lot. Indian is on global map in all the sectors.