Tarapore Committee was associated with which one of the following?

The Tarapore Committee is primarily associated with fuller capital account convertibility (CAC) of the Indian rupee. The committee (initially in 1997 and revisited later) outlined a roadmap, sequencing and macroeconomic preconditions required before moving to full CAC, explicitly recommending measures such as reducing the fiscal deficit to around 3.5% of GDP and lowering public debt as prerequisites for fuller convertibility [1]. The 2006 report is formally titled “Report of the Committee on Fuller Capital Account Convertibility” and provides detailed recommendations on timing, sequencing and regulatory/supervisory issues for implementing fuller CAC in India. Therefore option 2 is the correct choice.

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 17: India’s Foreign Exchange and Foreign Trade > Limitations > p. 499