Prime Minister Manmohan Singh's recent statement that the rupee will be allowed to trade freely against other currencies will without doubt boost overseas investments in the country. Indeed we need to devise a plan for allowing the rupee to trade freely against other currencies as part of an effort to better integrate the country with global economies.

India today is an enterprise-driven economy and if the rupee becomes more convertible it will only help to reduce transaction costs.

Of late the currency has been ruling at below 45 to a dollar and perhaps one and all will agree with me that this Indian growth story is here to stay. I strongly feel that given the changes over the last two decades, there is merit in moving towards full capital account convertibility within a transparent framework.

As far as I can see, making India a financial center is not going to be possible without a convertible rupee and this recent proposal will be a clear signal of the country's growing confidence in its ability to take its rightful place among emerging economic superpowers.

If everything goes as planned, this will allow Exim Inc. to be able to invest in overseas assets and this would also mean that reforms pertaining to liberal FDI policies and simplified labour laws, besides hassle-free imports and exports will have to be ratified. And in doing so, the Exim community will profit immensely. As for now, let's keep our fingers crossed.

Monthly Economic & Commercial Report on Peru for quarter ending January 2006 giving latest updates on developments directly affecting India's foreign trade and investment.

Free flow of cheap bulk drugs imports from China have suddenly posed a big threat to India's domestic industry, as a result of which many units are now even facing closure.