Exports in July grew by 13.2 per cent, the lowest expansion so far this

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fiscal, to $16.24 billion as major markets like the US and Europe are facing fragile economic recovery.

During the first three months of 2010-11, the shipments grew by about 30 per cent.

In July 2009, exports stood at USD 14.34 billion, according to the official data released today.

Commerce Secretary Rahul Khullar had recently said that the slowdown in the growth rate may continue for the rest of the fiscal as the developed countries may go for fiscal consolidation by partially rolling back economic stimulus packages.

India's exports showed robust growth rates in April (36.2 per cent), May (35.1 per cent) and June (30.4 per cent).

Industry experts opined that as the government has announced some more incentives to the laggard sectors, exports would achieve the target of USD 200 billion in 2010-11.

"The sops provided by the government in the Foreign Trade Policy will help in getting close to the target of USD 200 billion in the current fiscal," Axis Bank Chief Economist Saugata Bhattacharya said.

"The sops would help in achieving USD 200 billion export target," International Trade expert with India's prestigious Indian Institute of Foreign Trade Rakesh Mohan Joshi said.

Imports in July grew by 34.3 per cent to USD 29.17 billion from USD 21.72 billion in the same period last year, indicating a rapid pace of domestic economic activity. As a result, trade deficit widened to USD 12.93 billion from USD 7.38 billion a year ago.

Oil imports increased by 4.4 per cent to USD 7.66 billion in July, while the non-oil imports rose by 49.6 per cent to USD 21.50 billion.

For the April-July period, exports grew by 30.1 per cent to USD 68.62 billion over the comparative months last year.

Imports during the four months to July grew by 33.3 per cent to USD 112.21 billion year-on-year. During April-July, trade deficit increased to USD 43.58 billion compared to USD 31.42 billion last year.

After witnessing contraction for 13 months to November 2009 due to the global demand slump, exports entered into the positive territory and have since posted a decent growth.

In the annual review of FTP, the government has announced various incentives including extension of two per cent interest subsidy to sector like leather, engineering, textiles and jute.

Besides, benefits under Market Linked Focus Product Scheme to garment exports to EU extended till March, 2011