India Inc warns against full float plans

India Inc today warned the government against full float of rupee without putting in place proper safeguard mechanisms and containing fiscal deficit.

"A 10 per cent deficit is not the time to look at capital account convertibility," new CII President R Seshasayee said.

He added that the Indian industry was not against moving towards full capital account convertibility, but felt it would be foolhardy to go in for full float without proper safeguards.

On the booming stock market, Seshasayee said the present state was "not a bubble" and the country had a vigilant regulator to check any malpractices.

Seshasayee, who showed concern over the spate of free trade agreements being signed by the government, demanded a comprehensive strategy to ensure a level-playing field for the domestic industry including small and medium enterprises.