One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because:

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Correct answer: it will help to promote exports. Full convertibility would mean the rupee exchange rate would be left to market factors without any regulatory inter- vention. There would be no limit on inflow or outflow of capital for various purposes including investments, remittances, or asset purchases/sales. Full convertibility of the Indian rupee is primarily aimed at promoting exports by making trade transactions easier and eliminating restrictions on currency exchange. This helps Indian exporters compete in global markets by allowing free movement of capital. Indian Economy 245 3. AGRICULTURE 32

One of the important goals of the economic liberalisation policy is to achieve full convertibility of the Indian rupee. This is being advocated because:

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