To sum up, the public policy in India recognises that (a)  appropriate management of capital account is critical for both growth and stability;  (b)  the cautious approach to capital account has given us leeway;  (c)  there are preferences in regard to different types of capital flows;  (d)  some fiscal costs are consciously incurred as necessary on account of sterilisation;  (e)  monetary and exchange rate management are very complex in the context of wellknown trilemma, and in the current complex global environment, Indian cannot be immune to global development but we should maintain domestic drivers to growth.
4  BIS Review 2/2008  V.  Policy perspectives  Admittedly there are several dilemmas, trade-offs and judgments in the process of managing capital account. The intensified pressures due to large and volatile capital flows in an atmosphere of global uncertainties make the task significantly complex and critical. I propose to summarise the possible approaches in this regard, mainly in terms of analysis.