India has to aim to have a hard currency latest by the end of the 2020s. I think it is very doable. First need an open capital account. I don’t think the Indian elite will do capital flight like the Chinese one. And I think our geopolitical situation does make all the difference.

We are per capita poor and we will remain behind the other big economies for some time. But again quantity has its own quality. This is the jump that we need to take. The world will see EUR and RMB also becoming much harder currencies. Dollar buying for reserves will fall by 2030

Of course we have to do all this step by step and gradually. But gradually does not mean forever in some cowardly fashion of passing the buck and kicking the can. Once high growth is back in 1-2 years as it will and RE cycle turns around most people will keep $$ in India happily.

Why is the Indian elite less likely to do capital flight compared to Chinese one? Because for all the complaining and whining about urban quality of life, and rightly so, people think their property and wealth is safe in India. It is a democracy with at least some rule of law :)

Like everything else this requires a mindset change. If you think India is terrible and people will jump ship at the drop of a hat then yes don’t do any of all this. I am bullish about India, it improving, and the wealth creators wanting to by and large keep huge chunks invested.

Very few places, if any, will offer growth at this scale for the next two decades. The elite here understand those opportunities much better than anybody else. They may occasionally work from here or there but why will not focus on India? It would be very rational to do so.

Anyway do read this piece by Dr VAN and @teasri
https://www.livemint.com/Opinion/5FHh7PsIReBA3IAzbeWefO/Can-the-rupee-become-a-hard-currency.html

Not saying they agree with my approach fully but it is a very interesting piece nonetheless