Mumbai: The government is considering further steps aimed at addressing exporters'' concerns as a rising rupee has started eating into their earnings.

The government would take further steps to ease the concerns of exporters who have been hit by rupee appreciation, union minister of state for textiles E V K S Elangovan said in Coimbatore.

India''s current account deficit widened slightly to $4.70 billion in the April-June quarter from $4.57 billion in the year-ago quarter, despite higher remittances from overseas Indians.

The country''s merchandise trade deficit rose to $21.58 billion in fiscal first quarter, compared to $16.95 billion in the same period a year ago, data showed.

However, the balance of payments surplus in the April-June quarter rose sharply to $11.2 billion, from $6.38 billion in the year-earlier period, thanks to robust foreign direct investment and portfolio inflows, the Reserve Bank of India said.

"Net capital flows remained buoyant reflecting sustained momentum of domestic economic activity, better corporate performance," the RBI said in a statement.

The surplus on invisibles, comprising mainly earnings from software and other business services and money sent by Indians living abroad, rose to $16.88 billion in April-June from $12.38 billion a year earlier.

India ended fiscal 2007 with a trade deficit of $64.91 billion and is expected to end fiscal 2008 with an even higher deficit.

The government has already announced an export package comprising several relief measures, including revision in duty drawback and duty entitlement passbook (DEPB) rates.

In addition, the premium on export credit guarantee has been reduced by 10 per cent and rate of interest on pre-shipment and post-shipment credit has been reduced by two per cent.

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