Dec. 11 (Bloomberg) -- India's Prime Minister Manmohan Singh will decide on further relief measures for the nation's exporters, whose earnings have been eroded by the strengthening of the rupee against the dollar.

The government is considering the refund of some duties as a relief measure, Trade Minister Kamal Nath told reporters in New Delhi today. The cabinet will review norms for overseas investment in India next week, Nath said.

Last month, India cut customs duty on manmade fibers and eased credit terms for leather and textile exporters. The government in October announced subsidized loans and tax breaks to exporters for the second time this year to help industries such as jute, cashew nuts and coffee.

``There is an urgent need for the government to take measures to bring relief for exporters and help them not lose their markets,'' said Ganesh Kumar Gupta, president of the Federation of Indian Export Organizations in New Delhi. ``The government should intervene to arrest the appreciation of the rupee and help contain its impact.''

Nath said Nov. 29 he expects last month's measures to help the textile industry and that more steps are being considered. He reiterated there would be no change in the government's $160 billion export target for the fiscal year to March 31.

The local currency has climbed more than 12 percent against the dollar this year and is the second-best performer in Asia. The rupee gained to near the highest in almost a decade as overseas investors, enticed by record economic growth, increased purchases of local shares.

Orders, Hedging

Exports account for 15 percent of India's economy, the third largest in Asia. A stronger rupee hurts the profits of exporters when dollar earnings are converted into the local currency.

India's exports rose in October at the fastest pace in 15 months as exporters filled old orders and hedged to cope with the impact of a surging rupee.

Exports rose 35.7 percent to $13.3 billion, while imports rose 24.3 percent to $20.8 billion, widening the trade deficit to $7.5 billion from $7 billion a year earlier, the Ministry of Commerce and Industry said Dec. 3.

``Exports rose as companies were carrying out the old commitments,'' Gupta said. ``The impact of rupee appreciation will start showing in the coming months.''

India's $906 billion economy grew 8.9 percent in the three months to Sept. 30 from a year earlier, after gaining 9.3 percent in the previous quarter. India's growth is second only to China among the major economies.

Overseas investors have bought $18.7 billion of stocks and bonds so far this year, higher than the previous record of $9.46 billion in 2005, according to the stock market regulator.

To contact the reporter on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net.

Last Updated: December 11, 2007 04:36 EST