The Indian Rupee is facing problems of plenty as cheap overseas capital flows into India. This though this has an immediate impact on the competitiveness of Indian exports, improvement in technology leads to better productivity gains while reducing costs of production within India. Over the long run this will help the Indian goods to stay competitive.

(US$m)	Mar-06	Apr-06	May-06	Jun-06	Jul-06	Aug-06	Sep-06	Oct-06	Nov-06	Dec-06	Jan-07	Feb-07	Mar-07	Apr-07	May-07	Jun-07	Jul-07	Aug-07
Exports	11,561	8,594	10,046	10,405	10,542	10,669	10,730	9,668	9,798	10,612	10,908	10,527	12,987	10,575	11,861	11,867	12,494	12,686
(YoY change)	13.9	12.7	24.3	31.9	39.7	23.9	27.0	11.9	35.2	15.5	19.3	17.0	12.3	23.1	18.1	14.1	18.5	18.9
Imports	14,314	12,535	14,307	14,044	14,542	14,753	16,829	16,490	15,342	14,977	13,758	14,147	17,190	17,635	18,078	19,196	17,509	19,569
(YoY change)	15.7	16.4	17.2	24.9	27.7	18.8	34.3	42.5	38.1	26.0	9.9	23.2	20.1	40.7	26.4	36.7	20.4	32.6
Trade Balance	-2,753	-3,941	-4,261	-3,639	-4,000	-4,085	-6,098	-6,821	-5,545	-4,364	-2,850	-3,620	-4,203	-7,060	-6,217	-7,329	-5,015	-6,883
Exchange rate Rs/US$	44.48	44.95	45.41	46.06	46.46	47.73	46.43	45.47	44.85	44.64	44.33	44.16	44.03	42.20	40.80	40.80	40.41	40.82