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

Mr Rahul Khullar commerce secretary said that however, this high growth rate is unlikely to be sustained in the coming months due to uncertainty in the US and European economies. He told reporters that "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.”

Mr Khullar said that during April to July, 2011-12, overseas shipments of Indian products grew by 54% to USD 108.3 billion. Though most of the sectors posted robust expansion in export volumes, he 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 USD 40.4 billion, leaving a trade deficit of USD 11.1 billion.

(Sourced from Business Standard)