The rupee fell to an all-time low of 61.21 on Monday, sparking speculation about potential measures from the Reserve Bank of India, including providing a special window for oil companies to buy dollars.
The govt is increasing the duty to 15 per cent from the existing 10 per cent.
The Reserve Bank of India has cut repo rates, the rate at which it lends money to banks, by 75 basis points since January this year, but most banks have not lowered lending rates.
It may widen because of money outflows.
India's current account deficit hit a record high 4.8 per cent of gross domestic product in the fiscal year that ended in March
Rupee, he said, is not in shambles and "we should not be overtly pessimistic".
India has been struggling to control the current account deficit that hit an all-time high of 6.7 percent of GDP in the December quarter.
Two senior ministry officials, who declined to be named, said the aim was to attract more capital flows from wealth funds in West Asian countries.
The monsoon rains are crucial for farm output and economic growth as about 55 per cent of the south Asian nation's arable land is rain-fed.
Earlier, Finance Minister P Chidambaram had said he thought the figure was 262 tonnes.
Overall, merchandise imports rose 10.9 per cent to $41.95 billion.
Global experts last week gave the same forecast.
His officials are working on a series of steps to attract at least $20 billion in new investment to fund the deficit without depleting India's $300 billion in forex reserves.
Will help to reduce current account deficit and restore growth.
Cabinet will take a decision on a conciliation offer from Vodafone.
India's policy to subsidise retail prices of fuels such as diesel, which accounts for about 40 per cent of refined fuel consumption, is a major drain on the budget.
The minimum threshold to come under GAAR will be Rs 3 crore.
Chidambaram said he expected gold imports to touch $40 billion in the current fiscal year to end-March, down 31 percent from the year-ago bill of $58 billion.
An estimated 177 million Muslims in India, the largest Muslim minority population in the world, are unable to use Islamic banks because laws covering the sector require banking to be based on interest, which is forbidden in Islam.
Prime Minister Manmohan Singh's government is in a race against the clock to pass reforms economists say are needed to breathe life into Asia's third-largest economy.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances