India's response to the present rupee steep devaluation crisis, has been less decisive than other emerging market economies. Most of the steps taken so far to address the problem have been small, such as lowering the cap on transfers of money abroad and slapping import duties on flat-screen TVs.
Such small measures aimed to balance the current ballooning current account deficit that is approaching $90 billion has backfired more as investors have lost whatever faith they had in the present Govt., and it has made the resolution more difficult. The government is in helpless mood and taking time to think any out of system solution, but instead making absurd and childish suggestions like shut down from 8 to 8 of petrol pumps and ATMs.
A media report suggests India's central bank RBI asked Hindu temples (Tirupati) to deposit their hoards of idle jewellery for conversion into bullion to meet demand for gold in the world's biggest consumer of the precious metal. The idea is that such a measure would reduce import demand for gold.