Policymakers should carefully learn from India’s 2013 ‘taper tantrum’ before tightening capital controls. Former RBI governor Subbarao recounts how a small outward remittance cap cut plunged the rupee 10% in two weeks, signaling a policy reversal. Given market uncertainty, policy actions must not rattle investor confidence. While current account details may differ, today’s acute scarcity of foreign capital, unlike 2013-14’s positive inflows, makes tightening inherently riskier. India should only implement capital controls in dire emergencies, to avoid adverse market backlash.