On Tuesday, the partially convertible rupee, the worst performing currency among the major global economies, dropped as much as 3.1 percent to 68.12 per dollar.
India's fiscal deficit during the 2012/13 fiscal year ending March fell to 4.9 per cent of the country's gross domestic product, compared with 5.8 percent a year ago.
Investor confidence has evaporated amid fears over the rising cost of funding India's gaping current account deficit, prompting New Delhi to delay plans to raise much-needed funds through partial privatisations, finance ministry sources said.
By tying gold imports directly to export volumes, India is effectively trying to cap how much bullion can be brought into the country, tightening supplies and driving up local prices.
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India has in recent months stepped up enforcement of tax collections as it looks to raise revenue to help plug its widening fiscal deficit.
The Reserve Bank of India announced measures late on Monday to curb the rupee's decline by tightening liquidity.
Media has raised the issues that new pricing to benefit Reliance Industries.
India's gold imports could pick up in the next few months after slumping 81 percent in June as falling prices spur buying, a government source said, adding to New Delhi's anxiety over a record-low rupee and a wide current account deficit.
The RBI banned imports on a consignment basis, making it difficult for jewellers to source raw material.
India's biggest jewellers' association has asked members to stop selling gold bars and coins.
Rupee, he said, is not in shambles and "we should not be overtly pessimistic".
India's record current account deficit has been a key reason behind why Standard & Poor's and Fitch Ratings cut their outlooks on the country's sovereign rating to 'negative' last year.
They are paying a premium of Rs 700 - Rs 1,500 per 10 gm.
Mayaram said the concerns over the pace of implementing economic reforms were "overstated".
Keeping that much money out of the banking system has created a liquidity deficit that has forced banks to borrow as much as RS 1.6 trillion from the central bank to meet daily funding needs.
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.
Jeweller and importers were awaiting the correction to stock the yellow metal for upcoming marriage season.
The company has flouted green norms at its plant in Tamil Nadu, a judge said.
Smelter produces more than 300,000 tonnes a year to supply half of India's domestic copper needs.
The wholesale price index, the main inflation indicator, rose an annual 6.84 per cent in February, higher than the 6.54 per cent rise estimated by analysts.
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