Measures will have limited impact on Rupee in short run: Rangarajan

India's measures to prop up the embattled rupee will have limited impact on the currency in the short run, the prime minister's top economic adviser C Rangarajan told television channels on Monday.

Asia's third largest economy took a handful of measures to prop up the embattled rupee on Monday, including increasing the limit on foreign investment in government bonds by $5 billion to $20 billion, the RBI said.

"I think the correction will happen over time, because it will happen only when the capital flows come in. The avenues have been opened," Rangarajan said.

The rupee and benchmark stock indexes trimmed gains after the Reserve Bank of India announced it would raise investment limits in government bonds, disappointing investors who had expected bolder measures.