This has served India well since it helps in continuous rebalancing of the various elements depending on global and domestic developments and thus maximises benefits while minimising costs associated with the process of financial integration. In this approach, the pace and sequencing of financial liberalisation could be tempered keeping in view the degree of comfort in moving forward in a credible way.
Gradualism also enables harmonisation with reforms in other sectors of the economy. A wide range of regulatory and institutional reforms were introduced in a planned manner over a period to improve the efficiency of financial markets.