Some of the measures that can be taken immediately to arrest the continuing depreciation of Indian Rupee and to reverse the trend are:
1.Making an order to permit the FIIs and NRIs to remit the sale proceeds of shares and profits during the next 3 years at the rate of exchange as on 1st September 2013 or at the time of remittance whichever is favourable to them. This will ensure that FIIs do not withdraw their investments thereby causing further fall in the value of Rupee
2.Government should borrow about US$10-US$20 billion by issuing bonds at attractive terms. This will to some extent narrow the current account deficit.
3.Government should issue tourist visas free of cost and also on arrival in India so that more foreign visitors would come to India thereby increasing earnings from tourism in spite of the depreciation of Rupee.
4. Government should reduce foreign exchange availability for Indians going abroad as tourists by a minimum of US$ 500/ – US$ 1000/ per year. About 15 million Indians are travelling abroad as tourists. Thus on an average, current account deficit will be reduced by an amount of US$ 7.5 billion- U$ 15/-billion.
5.For purchases made in India but paid for by relatives abroad in foreign currency, excise duty, sales tax etc may be waived. This will induce NRI, PIOs to gift costly items, cars,, etc.Foreign exchange will be remitted for this purpose
6. Government can also sell dollars from its reserves occasionally to strengthen Rupee