be reenergised. in this regard, agreements on a " critical minerals corridor " and a " food corridor " for safeguarding food security are necessary. such arrangements have to be fair and equitable. second, there is a need to develop cooperation in areas of common interest and urgent needs such as climate change where no country can devise strategies on its own. 4 / 6 bis - central bankers'speeches smooth and orderly green transition is necessary to avoid disruptions to economic activity and loss of growth potential. while the investment needs for smooth green transition are large, the actual financial flows to green projects are highly skewed and are, by and large, concentrated in advanced economies. as a result, there is a need to enhance green capital flows to emes. at the same time, we have to be mindful of potential financial stability implications of green transition. third, improving infrastructure remains key to long - term growth. while investment in hard infrastructure ( roads, ports, airports, electricity, water ) is important, there has to be equal emphasis on creating soft infrastructure ( education, health, legal, financial, institutional ). skill enhancement and increasing female labour force participation are key to enhancing effective labour supply and potential growth of the region. fourth, india's experience has shown how digital public infrastructure ( dpi ) can be utilised for advancing financial inclusion and productivity gains through cost reductions. our sustained engagement in the india stack and the unified payments interface ( upi ), especially during the pandemic and thereafter, has given us the confidence that digital public infrastructure can become a critical part of global public good when scaled up beyond national boundaries. the linkage of indian upi and the fast payment systems of a few other countries drives home the potential of the upi to become an international model for cross - border payments. fifth, new technological developments like artificial intelligence ( ai ) and machine learning ( ml ) can bring about significant improvements in efficiency and productivity of businesses. necessary safeguards, however, need to be put in place to prevent the misuse of technology. in particular, global financial market regulators need to be vigilant about the possible misuse of ai and ml in perpetrating financial fraudulence. conclusion the global economy stands at crossroads. challenges remain in plenty, but new opportunities are also knocking at the door. together, the course we take from here will decide our destiny in times to come. we need policies that are attuned to the new realities

india ’ s capital account management – an assessment 1 1. in the previous fedai annual day address in november 2020, governor shri shaktikanta das had observed that cac will continue to be approached “ as a process rather than an event ”. what i will do in this address is to expand on that theme and bring into focus some of the important issues on which, in my opinion, further public debate is warranted, to continue along this process of capital account convertibility. what is capital account convertibility? 2. the balance of payments ( bop ) of a country records all economic transactions of a country ( that is, of its individuals, businesses and governments ) with the rest of the world during a defined period, usually one year. these transactions are broadly divided into two heads – current account and capital account. the current account covers exports and imports of goods and services, factor income and unilateral transfers. the capital account records the net change in foreign assets and liabilities held by a country. convertibility refers to the ability to convert domestic currency into foreign currencies and vice versa to make payments for balance of payments transactions. current account convertibility is the ability or freedom to convert domestic currency for current account transactions while capital account convertibility is the ability or freedom to convert domestic currency for capital account transactions. the tarapore committee ( 2006 ), for instance, defined speech delivered by deputy governor shri t rabi sankar on the fifth foreign exchange dealers ’ association of india ( fedai ) annual day on october 14th, 2021. it was delivered via virtual platform. capital account convertibility as the “ freedom to convert local financial assets into foreign financial assets and vice versa. ” 3. the degree of bop convertibility of a country usually depends on the level of its economic development and degree of maturity of its financial markets. therefore, advanced economies ( aes ) are almost fully convertible while emerging market economies ( emes ) are convertible to different degrees. why is capital account convertibility important? 4. free capital mobility, or internationalization of capital markets, is commonly recognized as an engine of global growth. specifically, benefits of internationalization of capital markets are well accepted, in terms of broadening the investor base for recipient country financial assets, improved liquidity in financial markets and positive pressures for market infrastructure and market practices. international capital markets, by enabling access to a global savings pool and to different currencies, can potentially reduce borrowing costs, facilitate better risk allocation