NEW DELHI, Aug 16: India’s exports surged by 27 per cent year-on-year in July as a resurgent economy pushed up industrial output, the commerce ministry said on Tuesday. Exports during July rose to $7.23 billion from $5.70 billion a year earlier. Exports rose 21.33 per cent year-on-year between April-June, the first quarter of the fiscal year, to $28.13 billion.

Imports in July grew by 33.21 per cent to $9.9 billion from $7.4 billion in July 2004. Imports grew by 36.36 per cent during April-June to $42.10 billion.

The trade deficit swelled to $13.97 billion during the quarter from $7.69 billion in the same period a year earlier.

“With this trend in exports and our concerted efforts to sustain it, I am confident that we will reach and even surpass the export target of $92 billion which has been set for this fiscal year,” Commerce Minister Kamal Nath told reporters.

He played down worries over the rising trade deficit, saying the country’s foreign exchange reserves of over $140 billion were enough to cover it.

The minister said much of the imports was industrial machinery which would boost national income.

Nearly 2.4 million new jobs would be added over the next two years because of buoyant exports, he added.

Government data shows that industrial production and foreign and domestic investments are all experiencing strong growth.—AFP