Subsequently, as international oil prices started rising and domestic growth picked up, deficit in current account re-emerged during 2004–05 to 2007–08 albeit remained range bound. After a period of stability, India’s BoP came under stress in 2008–09 reflecting the impact of global financial crisis. As capital inflows plummeted, India had to draw down its foreign currency assets by US $ 20 billion during 2008–09.
This has been done in other countries, and it should be done in good time, before it becomes obvious to everyone that it is required. But there is time to consider e.g. the criteria and conditions to be applied. The facility should be in place early in the new year.