“We cannot have full convertibility of rupee but we can have fuller (close to full) convertibility, almost close to full float of currency,” he said inaugurating the three-day Economic Editors Conference beginning here.
“It is now being increasingly realised by several countries that at any given point of time there cannot be  any ideal condition in the overall economy conducive to full convertibility of currency,” he added.
 The government will continue to liberalise norms on convertibility of rupee on capital account, he said adding “but there will always be some sort of regulation on movement of capital.”
The economy has to be geared up to meet several safeguards needed to be ready for full float of rupee. On measures taken by Securities & Exchange Board of India on phasing out of Participatory Notes he said “these will have short-term and medium term impact on flow of capital through Foreign Institutional Investors (FIIs).”

CMIE SEES DIP IN GROWTH

Mumbai, pti: The Centre for Monitoring Indian Economy (CMIE), on Monday, said in it’s monthly review that the country’s economic growth in second quarter of fiscal year 2008 is expected to be slightly slower than in preceding two quarters due to slow down in the industrial growth.
“We expect the economy to have grown by 8.8 per cent in September 2007 quarter. Although healthy, this growth is considerably lower than 9.3 per cent growth in real gross domestic product clocked in June 2007 quarter,” it said.
The growth in September 2007 quarter is expected to be slightly slower than that in preceding two quarters, mainly on account of higher base (10.2 per cent, second  highest quarterly growth since the June 2000 quarter) and lower industrial growth, it added.
Although growth picked up in the following month to 10.7 per cent, CMIE expects the average industrial growth for September 2007 quarter to be 8.7 per cent, much lower than the 10.4—11.3 per cent clocked in the preceding six quarters.