India's FY27 Kick-Off: Exports Thrive Amid Trade Deficit Hike

India's external sector launched FY27 with strong merchandise exports and FDI inflows, despite a widening trade deficit from increased imports, as reported by the latest RBI Bulletin. While exports grew to USD 45.14 billion in May, imports surged to USD 73.40 billion, driving the trade deficit to USD 28.26 billion.

India's external sector set off FY27 on a robust note with a marked improvement in merchandise exports and a surge in foreign direct investment (FDI) inflows. However, an uptick in imports widened the merchandise trade deficit, according to the latest bulletin from the Reserve Bank of India (RBI).

The bulletin highlights that merchandise exports climbed to USD 45.14 billion in May 2026, up from USD 43.72 billion in April, fueled by both oil and non-oil shipments. Non-oil exports increased significantly, signaling a well-rounded growth in export activities.

On the import side, the numbers also climbed, reaching USD 73.40 billion in May compared to USD 71.93 billion in April, largely driven by larger volumes of oil imports. Consequently, the trade deficit widened slightly, hitting USD 28.26 billion from April's USD 28.21 billion, while FDI inflows rose impressively to USD 13.77 billion, indicating strong foreign investor interest in India.