Prime Minister Narendra Modi’s government is considering tapping Indians living overseas to lure foreign exchange flows and prop up a sagging rupee, according to people with knowledge of the matter.
Officials from the finance ministry and the central bank are discussing a plan to raise money from non-resident Indians, the people said asking not to be identified as the information is not public. An announcement regarding the method may come as early as this month, they said, without providing further details.
India is seeking to boost flows to support its currency that has declined more than 14 percent against the dollar this year making it Asia’s worst performer. The risk of a widening current-account deficit left the rupee vulnerable to the rout in emerging markets amid surging oil prices, trade tensions and rising U.S. interest rates. Dollar-rupee contracts maturing in one month reversed loses to gain 0.3 percent after the report.