Consider the implications of the proposed LRS restrictions. An NRI may be able to repatriate up to USD 1 million annually from eligible NRO balances, subject to conditions. Under the proposed framework being discussed, a resident Indian could face a ₹50 lakh ceiling for current-account remittances and no automatic-route facility for capital-account remittances. If NRIs were also granted more favourable long-term capital gains treatment, the disparity in financial flexibility could widen further. An Indian taxi driver in the UAE could enjoy greater freedom to move eligible wealth across borders than a doctor or engineer earning, saving and paying taxes in India. But the economic consequences extend beyond fairness. Restrict residents’ ability to build and diversify wealth, and you risk making households more cautious about spending on homes, cars, travel, education and other goods and services. Weaker consumption can weigh on business revenues, investment and employment. Capital controls may seek to conserve foreign exchange. But if they also discourage wealth creation and weaken household confidence, the wider economic trade-offs deserve serious scrutiny. Also forcing Indians to confine their capital to domestic markets will only inflate Indian real estate beyond the reach of the common man and create exit liquidity for FIIs in the equity market. You cannot squeeze the avenues for wealth creation, constrain financial mobility and expect domestic consumption to keep powering growth indefinitely. That is how a policy intended to protect the economy risks becoming a race to the bottom. @1shankarsharma @WeekendInvestng @ActusDei @suchetadalal @manoj_216