The union finance ministry and the country's central bank have announced a slew of measures to boost the rupee and revive the slowing Indian economy.

The limit of foreign ownership in rupee-dominated bonds has been increased to boost higher flow of capital. The move could help lift the value of the Indian rupee, which has fallen 21 per cent against the dollar over a year's period.

The overall limit of Foreign Institutional Investment in government securities has now been increased to $20 billion compared to $15 billion earlier. The government also released a new external commercial borrowing (ECB) scheme directed at the exporters who manufacture products in the country as well as players in the infrastructure sector.

The new ECB will have an investment limit of $10 billion over the overall indicative ECB ceiling of $30 billion. Companies in the directed sector can now raise loans using the new scheme to replay rupee loans raised from the domestic banks or for fresh capital requirement. Under the rules, a firm will be able to utilize a maximum permissible ECB of 50 per cent of the average annual export earnings realized in the three preceding years financial years.

It is to be seem if the measures are able to boost eh falling value of the rupee and help return the economy to a high growth trajectory.