October 02, 2007	Tuesday	Ramazan 19, 1428

NEW DELHI, Oct 1: India’s trade deficit widened to $6.88 billion in August from $5 billion a month earlier as imports surged, official data showed on Monday.

The trade gap stood at $4.08 billion in August 2006.

Imports in August jumped 33pc to $19.57 billion from a year earlier.

Exports rose 19 per cent to $12.69 billion, broadly in line with the previous month.

But exports were down sharply from the same month a year ago when they grew by 41pc, hit by a sharp appreciation in the rupee, which is trading at nine-year highs against the dollar.

The Federation of Indian Export Organisations said the rise of the rupee was costing export jobs.

“Nearly four million people have already lost their jobs and if the government does not intervene the number could increase to eight million by next March,” Federation President Ganesh K Gupta said.

India’s rupee has climbed 11pc against the dollar amid unprecedented foreign exchange inflows into the world’s second fastest-growing economy after China.

Federal Commerce Minister Kamal Nath said the government would consider help to exporters in the form of tax relief.

The trade deficit totalled $32.5 billion for the first five months of the financial year that started in April.—AFP