To conclude, there is no denying the fact that sound capital controls have hitherto worked well in the Indian case and helped in protecting the economy from the vagaries of international capital flows and in insulating the economy from the contagion effect of various currency crises but the time has probably come to revisit the issue of greater capital account liberalisation.
So what should India do or how should it proceed further on this path? The first obvious question has to be why does India need capital account convertibility when empirical evidence regarding its impact on growth is mostly negative? The indirect effect, as argued by some researchers, is also not well established.