Furthermore, in order to attract new investment and to quicken the implementation of projects, an investment allowance for new high value investments was introduced. This is expected to provide enormous spill-over benefits to small and medium enterprises. 36.
To reduce the CAD to sustainable levels, the Reserve Bank and Government of India have taken various policy measures including, inter alia, (i) an increase in the customs duty on gold, (ii) instructions to all nominated banks/nominated agencies to ensure that at least one fifth of every lot of import of gold (in any form/purity including import of gold coins/dore) is exclusively made available for the purpose of export and (iii) issuance of inflation linked bonds to wean away investors from gold to other savings instruments.