The argument of the few that allowing of import of gold liberally will eliminate such unofficial transactions both on receipts and payments side of the current account, reduce the outflow of forex for transaction costs and improve the effectiveness of policy of exchange rate management has been fully vindicated.
At the same time, the caution expressed by the very same few in regard to capital flows has also helped India in withstanding the volatility of international flows. It is not the case that there are no anomalies left in the management of the external sector.