Withstanding the rupee pressure, India’s exports showed a healthy growth of 19.26 per cent while imports posted a moderate 2.31 per cent expansion in September.

Reflecting a squeeze in the margins for exporters, the export growth in rupee terms was only 4.31 per cent while imports, measured in domestic currency, declined by 10.51 per cent in September this year over the same month in 2006-07. Exports improved to $12.79 billion in September from $10.73 billion in the corresponding month of last year.

Imports rose to $17.21 billion from $16.82 billion, according of official data released here on Thursday. The country narrowed its trade deficit to $4.42 billion in September from $6.09 billion in the year-ago period on the back of sharp drop in imports.

Nath confident

While the export growth has more than halved since last year, Commerce and Industry Minister Kamal Nath maintained his optimism about touching the $160 billion target for 2007-08. “I am still confident that exports will pick up in the next few months,” Kamal Nath said.

Mr Kamal Nath also said slowdown in imports could be due to “seasonal factors” and did not reflect slackening of demand.

The Federation of Indian Export Organisations (FIEO) expressed satisfaction over the export performance despite rupee gaining over 10 per cent since March this year.