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Chief Economic Advisor to the Ministry of Finance, Dr Kaushik Basu said rupee is likely to stabilise at a little over 50 against the dollar. He said that while a volatile rupee, at 56 to 57 to the dollar is undesirable, expecting it to fall below the 50 level is an improbability. He said that “Rupee volatility at 56-57 (to the dollar) is not desirable; the days of INR 47 and INR 48 are gone. It will probably be around the low 50s and we have to live with that.” He said that India should also take advantage of the recent depreciation in the rupee to push exports. According to Dr Basu, the withdrawal of dividend tax cuts in the US was likely to result in increased equity inflow into the country. This, if supplemented by reforms, might see India on “top of the world chart”. He said that “I have no doubt that in another two to three years’ time, India will be on the top of the global charts.” Reiterating the need for reforms, Dr Basu said that reforms through the legislative route might be difficult to achieve immediately. But small-ticket ones such as “managed and slow” diesel decontrol and opening up of the retail sector might be possible. Contrary to popular opinion, opening up of the agri-retail sector would see foreign majors bring in efficiencies. This would benefit farmers, with higher demand for their produce and consumers with a “marginal” drop in price, he maintained.