Hit hard by the appreciating rupee, the country's export growth continued to slide in the second consecutive month of the fiscal to 14.05% in June. Export growth stood at 18% in May 2007 compared to 21% during the corresponding month of the previous fiscal. In rupee terms, exports touched Rs 48,386.49 crore, which was just 0.97% higher than the value of exports during June 2006.

In dollar terms, the country’s merchandise exports during June 2007 were valued at $ 11.86 billion, recording a growth of 14.05% over June 2006. Reacting to the deceleration in growth, the Federation of Indian Export Organisations (FIEO) has warned that worst was yet to come. Export growth may slip to a single digit next month if corrective steps are not taken, FIEO president Ganesh Kumar Gupta said in a statement issued here. The government announced an export package last month to mitigate the impact of appreciating rupee which the exporters feel is not enough.

Cumulative value of exports for April-June 2007 was $ 34.30 billion against $ 29.044 billion during the same period last year. The country’s imports during June 2007 rose 36.68% to $ 19.19 billion compared to $ 14.044 billion in June 2006. In rupee terms, imports increased 21% during the month. The cumulative value of imports for April-June 2007 was $ 54.908 billion against $ 40.88 billion during the corresponding period of the previous year.

Oil imports during June 2007 were valued at $ 5.66 billion — 9.85% higher than oil imports in June 2006 at $ 5.157 billion. Oil imports during April-June 2007 were valued at $ 14.83 billion, which was 4.21% higher than the oil imports of $ 14.23 billion in the corresponding period last year. Growth in the oil import bill was moderate due to stronger rupee.

Non-oil imports during June 2007 were estimated at $ 13.53 billion, 52.25% higher than $ 8.887 billion recorded in June 2006. Non-oil imports during April-June 2007 were valued at $ 40.078 billion, a growth of 50.36% over $ 26.654 billion in the corresponding period of 2006-07.

The trade deficit for April-June 2007 was estimated at $ 20.605 billion, which is higher than the deficit during April-June 2006 at $ 11.841 billion.