Prime minister Man mohan sigh has suggested RBI to revisit the full convertability of rupee. The same suggesstion has been suggested in the year 1997. He has also appointed a commitee for it under SS Tarapore.
But it seems the converatablity issue will be a gradual process because weighty issues like macroeconomic consolidation and economic reform are still waiting to be resolved.In 1998 east asian currencies collapsed since the investors fled to safer havens, but indian currency remained unaffected by the catagion since the currency is less open and not vulnerable to capital flight.
A move towards convertability will surely result in economic growth.
cantagion - A harmful, corrupting influence: feared that violence on television was a contagion affecting young viewers.