• Convertibility is the ease with which a country's currency can be converted into gold or another currency through global exchanges.
• Also, this would mean that international investors can buy and sell Indian assets at will.
• After 1994, the rupee has been partially convertible which means that the currency is changed freely into foreign currency for business and trade expenses.
• It cannot be converted freely for acquiring overseas assets because capital convertibility is partially free.
• Experts feel full convertibility of rupee would facilitate growth and higher foreign investments.
• India's rupee is a partially convertible currency so rupees can be exchanged at market rates in certain cases, but larger amounts require approval.
• Fully convertible currency would increase liquidity in financial markets, improved employment and business opportunities, and easy access to capital.
• Some of the disadvantages include higher volatility, an increased burden of foreign debt, and an effect on the balance of trade and exports.

•   The economic liberalisation in India refers to the opening of the country's economy to the world with the goal of making the economy more market and service-oriented, thus expanding the role of private and foreign investment.

•   With the arrival of liberalisation, the government has regulated the private sector organisations to conduct business transactions with fewer restrictions.

•   Main objectives of Liberalisation:

o  Boost international foreign investment, industrial production, and technology competitiveness.

o  Increase the position of Indian goods in the international markets.

•   Outcomes of Liberalisation:

o  Removing the tariff barriers and, therefore, reducing the products or services prices for the consumers.

o  Trade liberalisation will increase the competition from abroad.

o  Encourage incoming investment.