Besides announcing a number of measures to shore up the rupee and control the current account deficit (CAD), the government has indicated that it may soon curb non-essential imports.
Some of the steps announced following a recent meeting chaired by the Prime Minister to review the state of the economy include scrapping withholding tax on masala bonds rupee-denominated debt sold overseas and relaxations in the overseas debt regime.
The decisions are aimed at checking CAD and increasing foreign exchange inflows. The government will also take steps to promote exports and restrict non-essential imports.
The items on which import restrictions would be imposed will be finalised in consultation with stakeholder Ministries and departments to ensure they are in sync with WTO norms, reports said.
Source : eximin.