Barua said that the central bank may need to think of ways to bulk up its forex reserves, should the pool shrink to near $500 billion in the coming months. "The central bank should intervene to ensure that a falling currency does not eclipse India's fundamentals," wrote Barua.

Consumer-goods makers are reporting robust demand for items priced nearly $2,000 in a nation where per-capita income is just a tad above that level, while industry data on sales of budget phones priced below $100 and motorcycles, an indicator of rural demand, are showing a weaker trend.

As two-year US treasury yields climbed past 4.1% to trigger algorithmic trades that wiped out ₹11 lakh crore of investor wealth in two days, the Reserve Bank tapped multiple platforms - the spot, futures and overseas derivative markets - to minimise the pace of depreciation in the local unit, dealers said.

The government on Monday extended the existing Foreign Trade Policy (2015-20) by another six months till March 2023 on account of volatile global economic and geo-political situation and currency fluctuations. The current FTP was to end on September 30 after it was extended in April.

Finance minister Nirmala Sitharaman will meet state chief secretaries this week to push state capital expenditure and to have better synergy in implementation of flagship schemes.

S&P Global Ratings on Monday retained India's economic growth projection at 7.3% in the current fiscal with downside risks and said inflation is likely to remain above the Reserve Bank of India's upper tolerance threshold of 6% till the end of 2022.

Some of the new projects planned include creating an Expressway grid comprising 6-8 lanes that connects all districts of the state. State government officials said nine new Expressways were being planned, one of which is going to be the Pune-Nashik eight-lane Expressway. The estimated cost of these nine expressways could be around Rs 2.35 lakh crore.

Chief Economic Advisor (CEA) V Anantha Nageswaran on Monday said the Indian economy was on the path to recovery but cautioned that foreign investors may remain cautious because of geopolitical challenges.

The policy provides guidelines related to imports and exports in India. The ministry announces the policy every five years.