These constraints impede the economy from responding to the boom in competitiveness provided by real depreciation. India has passed a new land acquisition law which may promote investment, but implementation of the new National Food Security Act will be fiscally costly and, along with the oil subsidy and other programmes, may keep the deficit high. Rupee devaluation has increased the costs of India’s oil and fertiliser subsidy, given the large size of its imports, and how the programme is structured.