PM calls for a roadmap oncapital account convertibility

Mumbai, Mar 18 (UNI) The architect of Indian economic reforms, Prime Minister Dr Manmohan Singh today called upon the Finance Ministry and the Reserve Bank to come out with a roadmap on capital account convertibility based on current realities.

'' Given the changes that have taken place over the last two decades, there is merit in moving towards fuller capital account convertibility within a transparent framework,'' the Prime Minister said while inaugurating the three-day 16th Asian Corporate Conference here this evening.

Stating that India's position, internally and externally, has become far more comfortable, the Prime Minister said '' I have requested the Finance Minister and the Reserve Bank to revisit the subject and come out with a roadmap on capital account convertibility based on current realities.'' This, Dr Singh said, will facilitate the transformation of Mumbai into not only a regional but also a global financial centre, adding the objective could be achieved through multiple options, including making the city as an Special Economic Zone(SEZ).

He also called upon the business leaders in Mumbai to provide the leadership to give a new lease of life to the city to make it '' a new financial capital of Asia, and become the bridge between Asia and the West in the world of finance.'' '' A proposal to make Mumbai a regional financial centre is already under active consideration,'' the PM said.

He said India's economic reforms have accelerated growth, enhanced stability and strengthened both external and financial sectors.

''Our trade as well as financial sectors are already considerably integrated with the global economy and the trend is irreversible.'' Mumbai, the PM said, with all its inherent advantages in terms of human capital and commercial acumen, can be positioned as a viable regional financial centre.

On the Asia Society's plan to open an India Centre in Mumbai, he said this is India's '' most vibrant and globalised cities, pulsating with creativity and enterprise. I am sure that the Asia Society will find Mumbai a hospitable city, and truly a '' Gateway to India''.

The Prime Minister, however, agreed that Mumbai needs investment in urban renewal, adding the city needs a world class airport and better public transport. But he said Mumbai must unlock the potential of its under-utilised assets, especially land.

Returning to his theme of turning Mumbai into a Shanghai, he said the city can learn from Shanghai's experience in reinventing, rebuilding and in rediscovering itself, adding as India's most cosmopolitan city, the Mumbaikar is a truly national Indian.

Saluting the spirit of Mumbai, Dr Singh urged every Mumbaikar to transform this city from being a Gateway to India to becoming a Gateway to Asia. He said Mumbai has the human skills, the connectivity and the advantage of location to become the financial capital of Asia. He assured the city will get the infrastructure it rightfully deserves to realise this dream, hoping Asia Society will be one of the catalysts in this process.

UNI SA SKB2004