How not to arrest the rupee's fall

It is not clear what items the government will treat as non-essential and if it will restrict such import through licensing or higher duties

The measures to bring more inflow include review of the mandatory hedging conditions for external borrowing. Also, permission for manufacturing companies to raise up to $50 million (Rs 3.6 billion) through such loans for a minimum period of a year, as compared to three years earlier. Plus, review of the cap on exposure of foreign portfolio investors in bonds of a business group and exemption from withholding tax for ‘masala’ bonds (issued outside India but denominated in rupees). 

It is difficult to gauge how market players will respond to these policy tweaks over the next few months. It is not clear