There are usually three preconditions for capital account liberalisation discussed: price stability, fiscal stability and stability of the financial institutions and markets. As we speak to day, achievements in respect of the stated parameters vary. The fiscal deficit at the General Government level needs consolidation.
It is desirable that growth along with low inflation and fiscal prudence become well entrenched before we take quantum steps towards a more open capital account. Besides, there are signs of global headwinds, though in the distant horizons. 14.