According to the Associated Chambers of Commerce & Industry of India (ASSOCHAM), India’s currency appreciated 8.35% between January and June 2007—coming second only to Brazil, which reported a 9.28% increase in the value of the real—and this sharp rise is affecting the South East Asian country’s competitiveness in international markets.

According to the report, if the currency situation is not altered India’s exports are likely to only achieve $145 billion this fiscal year, far short of the targeted figure of $160 billion for 2007-08.

Whilst Brazil has still reported the most significant rise in its currency at 9.28% during the six-month period, the Indian rupee has appreciated far more than currencies in many other countries such as Thailand (+7.56%), Russia (+2.08%), Malaysia (+1.98%), China (+1.82%), Singapore, Bangladesh, Indonesia, Pakistan and South Korea (all below 1%)—all of which compete with India for international trade.