Economics · Indian Economy
What mandate did the first Tarapore Committee (1997) recommend regarding the average domestic inflation rate as a precondition before implementing full Capital Account Convertibility in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1It should be maintained between 1% and 2% for five consecutive years.
- 2It should be brought down within the range of 3% to 5% for a three-year period.✓
- 3It should be pegged precisely at 0% to ensure absolute price rigidity.
- 4It should match the average double-digit inflation rate of developing nations.
Correct answer
It should be brought down within the range of 3% to 5% for a three-year period.
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