00:00Just over a week ago, Prime Minister Narendra Modi called on Indians to adopt austerity
00:04and helped the nation cushion the adverse impact of the war in the Middle East.
00:09He urged citizens to conserve fuel, limit foreign travel and put off gold purchases.
00:15The government moved swiftly after that and rolled out a series of measures to shield the economy
00:20and stall the Indian currency's freefall.
00:23Indian state refiners, for the first time in four years, increased pump prices of petrol and diesel,
00:30a move that provides some relief in reducing the massive losses oil detailers have been facing.
00:36At the same time, Modi's government also cracked down on gold and silver imports.
00:41Import taxes on gold and silver have been doubled to about 15%
00:45and the government has tightened import rules for these precious metals as well.
00:50Gold is one of India's biggest imports alongside crude oil and electronics,
00:55adding significantly to the nation's import bill and putting pressure on the Indian rupee.
01:01Bloomberg also reported that the government is now looking to sharply reduce taxes
01:07paid by foreign investors on Indian bonds.
01:10This is aimed at boosting capital inflows into the country.
01:14Taken together, the message from policymakers is clear.
01:18Protect India's forex and support the rupee which slid past the 96 per dollar level on Friday
01:24to hit a record low.
01:26The big question now though is what comes next?
01:30India would be heading for more austerity if tensions between the US and Iran continue
01:35and there is no agreement to reopen the Strait of Hormuz.
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