INSUBCONTINENT EXCLUSIVE:
The rupee has declined more than 14% against the dollar this year, Asia's worst performerPrime Minister Narendra Modi's government is
considering tapping Indians living overseas to lure foreign exchange flows and prop up a sagging rupee, according to people with knowledge
of the matter.Officials from the finance ministry and the central bank are discussing a plan to raise money from non-resident Indians, the
people said asking not to be named as the information is not public
An announcement regarding the method may come as early as this month, they said, without providing further details.India is seeking to boost
flows to support its currency that has declined more than 14 per cent against the dollar this year, Asia's worst performer
The risk of a widening current-account deficit left the rupee vulnerable to the rout in emerging markets amid surging oil prices, trade
tensions and rising US interest rates
The rupee fell 0.4 percent Tuesday to a record low of 74.3950 per dollar.Finance ministry spokesman D.S
Malik didn't answer two calls to his phone and a spokesman for RBI didn't respond to an email.In the past too, the government has resorted
to bond sales and dollar deposits to overseas Indians to attract foreign funds and ward off pressure on the rupee
RBI had put in place a so-called foreign currency non-resident bank deposits plan in 2013 to support the rupee during taper tantrum.Overseas
investors have pulled a net $11 billion from Indian stocks and bonds this year amid an emerging-market sell off, adding to worries that
India will struggle to bridge its ballooning current-account deficit
The government has raised import tariffs while the central bank allowed companies to raise more money abroad and eased norms for foreign
investment in local bonds though those efforts haven't stopped the rupee's slide.Surging oil prices mean that India's current-account
deficit is estimated to widen to $75 billion in the fiscal year to March, or 2.8 percent of gross domestic product, according to Bank of
That would be the highest since fiscal 2013.
