India explores measures to lure capital flows

May 28, 2012 India is looking at ways to attract new capital flows from foreign investors as a way to bolster its ailing currency, a senior finance ministry official said on Monday.

India's rupee hit an unprecedented string of all-time lows last week, falling as low as 56.38 to the dollar but it rose on Monday to a one-week high of 55.18 rupees as investors took profits on the greenback.

The government is expected to announce this week steps that could include easing rules for overseas retail investors to buy local shares or bonds, the official, who did not wish to be named, told reporters.

The government will also conduct road shows in the Gulf countries next month to promote investments in India, he said. India draws major remittances from Indians living abroad, especially in the Gulf countries, and officials believe there may be scope to attract more money from the region to help support the rupee.

AFP