India may take a number of steps in coming months to bolster foreign reserves and the rupee, including possibly restricting outflows from businesses, according to Citigroup Inc.
The government has already taken several measures, including hiking fuel costs and increasing taxes on gold imports, to curb foreign outflows as soaring global oil prices put pressure on India’s current account deficit. Authorities may now consider steps to encourage foreign inflows, and could look at tightening rules on outward investment by businesses, Citi economists led by Samiran Chakraborty said in a research note.
