Raj, most articles on workflows I've seen recommend sharpening as the very last step.
One such article states "oversharpening in a camera's firmware can permanently damage an image causing undesirable results that can not be sufficiently removed later by any software tricks. So, it is thought by many that not applying too aggressive of a sharpening filter when processing the image internally, as is often the case with more consumer type cameras, is actually a much preferred practice, leaving final sharpening to you in a software program as the very last step. Many experts will tell you that most of your software fixes or tweaks such as changing color levels or luminosity, applying other filters or corrections etc. should be done first before sharpening is done because of the way sharpening changes the pixels in an image."
Another : "Sharpening can be easily added to any picture (and normally greatly improves it, if done right), but it can hardly be removed again. Once you've done it, you have so-called sharpening artefacts.
For this reason, sharpening normally is the last step in any workflow ... take the picture, download it, transform it to work with it in PS, do any modifications you might want to do, like change colours etc... then SAVE ... then resize for the web, then apply sharpening and then save as JPEG.
If you want to have the least in-camera sharpening, then RAW is the way to go."
I always do it last (usually USM), having found it's usually the best outcome.
Hope that helps....