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The country’s imports fell 6.2 per cent to $38.1 billion in July and the trade deficit narrowed to $12.26 billion during the month.
Trade Secretary S R Rao told reporters in New Delhi that July exports were the highest since March.
“A stable exchange rate helps exports. Volatility does not permit exporters to get full value from the depreciation,” Rao said.
The Indian Finance Ministry unveiled a set of measures on Monday to check the widening current account deficit (CAD) and stem the rupee slide in a volatile foreign exchange market.
“What is important is to have a stable currency. The new incentives announced by the minister should play out in the next couple of months. We expect exports to be doing slightly better,” Rao said
India is also looking to contain gold imports at 850 tonnes this financial year, according the country’s Finance Minister Palaniappan Chidambaram.
Following the increase in import duties, gold and silver imports declined to $2.97 billion during July this year as opposed to $4.47 billion in July last year.