India limits foreign investments; hopes to stem rupee’s decline
by The Canadian Press
The U.S. dollar has risen about 15 per cent against the Indian rupee this year, pushing up costs for oil and other crucial imports
NEW DELHI—India has tightened restrictions on the amount of money Indian companies and individuals can send out of the country, trying to curb a sharp decline in the rupee.
The U.S. dollar has risen about 15 per cent against the Indian rupee this year, pushing up costs for oil and other crucial imports, amid stagnating economic growth.
The central bank said the measures it announced are aimed at “moderating” outflows.
The limit for overseas investments by Indian companies has been reduced to 100 per cent of a company’s net worth from 400 per cent. State oil companies were exempted.
The amount of money individuals can remit overseas was cut to $75,000 each financial year from $200,000.
The Reserve Bank said it could grant exemptions to the new limits if a genuine requirement was demonstrated.
Asia’s third-biggest economy expanded five per cent last fiscal year, which was the slowest growth in a decade, showing the impact of high inflation, weak consumer spending, and delays in economic reforms that dampened investment.
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