UPSC Exam > UPSC Questions > In the context of the Indian economy, the Tar...
Start Learning for Free
In the context of the Indian economy, the Tarapore committee is related to which of the following?
- a)Microfinance
- b)Change of financial year cycle
- c)Direct tax reforms
- d)Roadmap for full Capital Account Convertibility
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
In the context of the Indian economy, the Tarapore committee is relate...
Capital Account Convertibility refers to the freedom to convert local financial assets into foreign ones and vice versa. It is associated with changes of ownership in foreign/domestic financial assets and liabilities and embodies the creation and liquidation of claims on, or by, the rest of the world. The Reserve Bank of India established the Committee on Capital Account Convertibility (CAC) or Tarapore Committee to propose a roadmap for full convertibility of the rupee on the capital account. The members of the Committee included Dr. Surjit S. Bhalla, Shri M. G. Bhide, Dr. Kirit Parikh and Shri A V Rajwade. So, Option (d) is correct.
Most Upvoted Answer
In the context of the Indian economy, the Tarapore committee is relate...
Introduction:
The Tarapore Committee is a well-known committee in the context of the Indian economy. It was constituted to provide recommendations on the roadmap for full Capital Account Convertibility in India.
Explanation:
The Tarapore Committee was chaired by former RBI Deputy Governor, S.S. Tarapore. The committee was set up to study and recommend a roadmap for full Capital Account Convertibility (CAC) in India. CAC refers to the freedom to convert local financial assets into foreign financial assets and vice versa at market-determined rates of exchange.
Key Recommendations:
The committee recommended a phased and cautious approach towards achieving full CAC. Some of the key recommendations included:
1. Gradual reduction in the restrictions on capital flows.
2. Improvement in the macroeconomic fundamentals of the economy.
3. Strengthening of the financial system to withstand external shocks.
4. Enhancing the transparency and efficiency of the foreign exchange market.
5. Building up foreign exchange reserves to a comfortable level.
Significance:
The recommendations of the Tarapore Committee have been instrumental in shaping India's approach towards capital account convertibility. The phased approach suggested by the committee has helped in mitigating risks and ensuring stability in the economy while opening up the capital account.
Conclusion:
In conclusion, the Tarapore Committee's recommendations on the roadmap for full Capital Account Convertibility have played a crucial role in guiding India's policies in this area. The careful and gradual approach suggested by the committee has helped in ensuring a smooth transition towards greater capital account liberalization while safeguarding the stability of the economy.
The Tarapore Committee is a well-known committee in the context of the Indian economy. It was constituted to provide recommendations on the roadmap for full Capital Account Convertibility in India.
Explanation:
The Tarapore Committee was chaired by former RBI Deputy Governor, S.S. Tarapore. The committee was set up to study and recommend a roadmap for full Capital Account Convertibility (CAC) in India. CAC refers to the freedom to convert local financial assets into foreign financial assets and vice versa at market-determined rates of exchange.
Key Recommendations:
The committee recommended a phased and cautious approach towards achieving full CAC. Some of the key recommendations included:
1. Gradual reduction in the restrictions on capital flows.
2. Improvement in the macroeconomic fundamentals of the economy.
3. Strengthening of the financial system to withstand external shocks.
4. Enhancing the transparency and efficiency of the foreign exchange market.
5. Building up foreign exchange reserves to a comfortable level.
Significance:
The recommendations of the Tarapore Committee have been instrumental in shaping India's approach towards capital account convertibility. The phased approach suggested by the committee has helped in mitigating risks and ensuring stability in the economy while opening up the capital account.
Conclusion:
In conclusion, the Tarapore Committee's recommendations on the roadmap for full Capital Account Convertibility have played a crucial role in guiding India's policies in this area. The careful and gradual approach suggested by the committee has helped in ensuring a smooth transition towards greater capital account liberalization while safeguarding the stability of the economy.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer?
Question Description
In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer?.
In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer?.
Solutions for In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice In the context of the Indian economy, the Tarapore committee is related to which of the following?a)Microfinanceb)Change of financial year cyclec)Direct tax reformsd)Roadmap for full Capital Account ConvertibilityCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup