Hardening rupee hits Indian exports

Tuesday, 02 October 2007, 19:30 IST
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New Delhi: The rising value of the Indian rupee continued to impact the country's merchandise exports as growth was a mere 4.31 percent in rupee terms in August, slightly higher than 3.1 growth in June, trade data showed Monday. In dollar terms, however, the export growth was higher at 18.91 percent and was valued at $12.69 billion, against $10.67 billion in August 2006, according to data released by the commerce ministry. In dollar terms, the growth was 18.52 percent in June. Cumulative exports for April-August 2007 were valued at $59.48 billion, against $50.26 billion in the same period last fiscal, registering a growth of 18.36 percent in dollar terms and 5.56 percent when pegged to the rupee. Imports, on the other hand, were valued at $19.57 billion during the period, representing an increase of 32.64 percent over $14.75 billion in August 2006. In rupee terms, the import growth was 16.35 percent. Cumulative imports for April-August 2007 were valued at $91.99 billion, against $70.18 billion last fiscal, registering a growth of 31.07 percent. In rupee terms the increase was 17 percent. Accordingly, trade deficit for April-August 2007 expanded to $32.50 billion, against $19.93 billion during the corresponding period last year. Oil imports for the first five months of current fiscal topped $25.9 billion - 8.32 percent more over $23.91 billion in the corresponding period last year. Non-oil imports for the period were valued at $66.09 billion, up 42.85 percent over $46.26 billion during April-August 2006.
Source: IANS