The government today said the rupee has fared better than those of other emerging economies and the exchange rate has stabilised. Risks to capital flows were accentuated due to volatile global conditions and the US Federal Reserve's announcement last May of tapering its fiscal stimulus had severely hit the rupee value.
"Government, RBI and Sebi took a number of measures to facilitate capital inflows and stabilise the forex market.
"Among emerging economy currencies, rupee was affected the least when the actual reduction took place in December 2013 and January 2014, Finance Minister P Chidambaram said in the Budget speech in parliament.
The government and the Reserve Bank of India had taken several steps to curb gold imports, which had hurt the CAD and led to the battering of the rupee.
The RBI had opened special swaps windows to attract deposits from non-resident Indians and allow oil-marketing companies to source dollars.
On its part, the capital market regulator had taken steps to check speculation in the currency market.
The Cabinet Committee on Investment headed by Prime Minister Manmohan Singh, has cleared 296 mega projects.