Indian financial sector competitiveness: reform capital controls, reduce regulatory risk, and shift tax regime to residence-based. The report evaluates international competitiveness of India's currency, equity and commodity derivatives markets using eight factors-capital controls, tax policy, regulatory risk, frictions, domestic market depth, position limits, trading hours and margins-and finds that capital controls, source-based taxation, high regulatory risk and procedural frictions substantially impair onshore competitiveness. It documents empirical market deterioration after abrupt 2013 interventions in INR derivatives and proposes short-, medium- and long-term reforms including FATF-aligned KYC, Handbook (2013) governance, rationalised margins/limits, residence-based taxation, and legal changes to enable OTC, options and cash-settled commodity contracts.