So far, the approach of Reserve Bank of India has been that of cautious gradualism, informed by the experience of other developing countries in Latin America and East Asia who perhaps liberalized their capital account too soon and too fast.
Yet, it should be recognized that as far as the real sector is concerned, the capital account is substantially open with regard to sourcing debt and equity from abroad as well as exploiting investment opportunity abroad. The restrictions in capital account are pronounced as far as the financial sector is concerned.