Analysts opine that the government and the Reserve Bank of India (RBI) must introduce more effective measures to fight the current account deficit or balance of payments and fiscal problems.
Though outward foreign investments have increased over the past few years, RBI’s curbs will not mean much in actual terms.
Analysts suggest that the government may impose a domestic tax on gold instead of resorting to import controls. Also, if the government mandates consumers to disclose income tax details for even smaller quantities of gold purchases, it might work better.
Further, analyst want the government to attract more capital into equities rather than debt. One of the ways to attract foreign capital in the equity market is selling the government’s minority stakes in well-liked companies.
A higher one-time hike in diesel prices would also help improve the financials of oil PSUs and lower oil consumption. The market continues to believe that non-resident deposits at higher rates would help attract $15 billion.
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