India [ Images ] has said it would exercise caution in embracing fuller rupee float since the gradual approach towards liberalising the foreign exchange regime has paid in the past.

"We have not been taking risky steps but still the gradual liberalisation in convertibility has been happening," Planning Commission deputy chairman Montek Singh Ahluwalia [ Images ] said at the annual WEF meeting in Davos.

The gradual process of reforms has worked quite well in India, he said. Reserve Bank of India-appointed Tarapore Committee had last year submitted its report on the issue and among other things recommended a five year time frame (2006-2011) to move toward fuller rupee float in three phases.

Addressing the session on the prospects for the world economy in 2007, the Planning Commission deputy chairman said the developed world has not been debating enough to see how the technology has made the world flat with the result that developing countries are getting increased opportunities.

For India, the concerns relate to making the economic growth all-inclusive besides improving the physical infrastructure.