July exports up 82% at $29 bn

India's exports jumped by a record 81.8% year-on-year to $29.3 billion in July, 2011, due to the sterling performance of sectors like engineering, petrochemical products and gems and jewellery.

However, this high growth rate is unlikely to be sustained in the coming months due to uncertainty in the US and European economies, Commerce Secretary Rahul Khullar said.

"Exports have done well... But my sense is that it (high export growth) is not going to sustain. It is simply not sustainable. We should see immediately by August-September growth rates slipping," Khullar told reporters here.

During April-July, 2011-12, overseas shipments of Indian products grew by 54% to $108.3 billion.

Though most of the sectors posted robust expansion in export volumes, Khullar cautioned that the exporting community should not get carried away by these high numbers and should brace themselves as "summer is not over".

Uncertain economic conditions in the US and Europe are likely to hit global demand. Together, these countries account for about 35% of the country's exports.

Imports, too, increased by 51.5% to $40.4 billion, leaving a trade deficit of $11.1 billion.

During the first four months of the fiscal, imports grew by 40% to $151 billion, led by inbound shipments of petroleum products worth $42 billion, an increase of 23% year-on-year. The trade deficit during the period stood at $42.7 billion.

Commenting on the data, exporters' body Fieo said: "The growth of 81.8% in exports is unheard of in recent history."

In July, India's engineering, petroleum products and gems and jewellery exports were worth $8.7 billion, $4.6 billion and $3.5 billion, respectively.