This paper examines the role of capital controls in shaping economic performance, with a focused empirical analysis in using the Capital Control Index by Chinn and Ito with emphasis on India. By integrating cross-country case studies and a robust quantitative framework—including correlation, regression, and panel analyses—the study investigates how calibrated capital control measures can simultaneously foster economic stability and provide policy flexibility during periods of financial turbulence. The findings indicate that while excessively stringent capital controls may hamper growth, moderate and strategically implemented measures, in conjunction with disciplined domestic credit management and a sound institutional framework, can effectively mitigate the adverse effects of volatile capital flows. Through extensive empirical evidence, including time series analysis and structural equation modelling, the research underscores the importance of domestic policy discipline in enhancing the buffering capacity of capital controls against external economic shocks. The paper ultimately contributes to the ongoing debate on the efficacy of capital controls in emerging economies, suggesting that tailored regulatory approaches can play a crucial role in sustaining long-term economic resilience and growth.