A week ago, the Indian government banned the importation of golden coins and medallions. Such a measure is aimed at stabilizing the national currency. “From now onwards, import of gold in the form of coins and medallions is prohibited”, the Economic Affairs Secretary said. He added that the ban is related to banks, authorized agencies, trading houses and other companies, which used to be allowed to ship gold to the internal market. In addition, the country's authorities reduced the limit for international transfers to $75,000 from $200,000 earlier. It is not the only rule toughening capital flows. Foreign investment is also under arrest. Now the Indian businessmen are restricted to invest in overseas companies. More than that, Indians who want to purchase real estate in another state have to wait when times grow better as the Indian government forbade to buy property abroad. “The central bank and the government of India effort to restrain the rupee depreciation”, HSBC said. “At the same time, the authorities have to fight rising inflation.” The situation inside the country is worsening. First of all, the restrictions have increased the price of basic food products by 9.7%.
