``We will approach the full convertibility issue (on capital account) cautiously,'' Sinha said in reply to a question from reporters. Nobody talks of the need for India to go in for full convertibility these days after the world learnt its lessons from the recent financial crisis, Sinha said while briefing newsmen about the deliberations of the World Bank conference on private sector investment in Indian infrastructure.

He said it was prudent financial management by the government more than the absence of full capital account convertibility which had insulated India from the financial crisis.

To a question, Sinha said confidence reposed in India by foreign investors could be gauged from the fact that investment totalling $ ninebillion continued to be in place in the country.

He, however, admitted that the government's role must be redefined so that it became a facilitator through appropriate policy formulations. Government is taking steps to bring the supplier and consumer in direct contact rather than having intermediaries.

``There should be no difficulty in this matter. This is the direction in which we are moving,'' Sinha said. In his closing remarks at the World Bank meeting, Sinha said many state governments were giving up ``populist methods'' and becoming business entities by taking policy decisions on merit, Sinha said.

Sinha told over 200 representatives from the Indian and foreign companies and banks that his government was in the process of changing policies and procedures.

"We are also aware of the difficult task of changing the mindset of people," he said.

Encouraged by the response to the Paris meeting by foreign investors to be part of India's liberalisation process, Sinha suggested that this could be madean annual feature.

Sinha said a number of suggestions for action, both by the government and the private sector, had emerged at the meeting covering the infrastructure sector. Sinha said during his talks with his French counterpart Dominique Straus-Khan it was felt that the private sector and the commercial public sector of the two countries should have greater contacts.

Asked for India's views on the planned multi-lateral agreement on investments, Sinha said New Delhi will wait for the individual responses to the accord.