Archive · 23 Jul 2026
India's FY27 starts with strong exports and FDI
India started its financial year 2027 with strong exports and foreign investments.
Exports increased to $45.14 billion in May 2026, driven by both oil and non-oil shipments.
However, imports also rose, leading to a wider trade deficit of $28.26 billion.
Foreign direct investments were strong at $6.5 billion, but portfolio investments saw outflows.
Non-resident Indian deposits remained stable, providing a steady source of external financing.
Overall, while exports and FDI are positive, the trade deficit remains a concern.
India's merchandise exports rose to $45.14 billion in May 2026, up from $43.72 billion in April.
Non-oil exports increased to $36.74 billion in May from $33.98 billion in April.
Merchandise imports rose to $73.40 billion in May, widening the trade deficit to $28.26 billion.
Net FDI inflows were $6.5 billion during April-May FY27, significantly higher than the previous year.
Portfolio investment remained in net outflow, resulting in overall foreign investment outflows of $5.5 billion.
- Who
- Reserve Bank of India (RBI)
- What
- India's external sector performance in FY27
- When
- April-May 2026
- Where
- India
- Why
- To assess the economic health and investment climate of India
Positive Economic Indicators
Trade Deficit Concerns
Export Growth
Positive Economic Indicators
India's merchandise exports rose to $45.14 billion in May 2026, indicating resilient export activity.
Trade Deficit Concerns
The rise in imports, particularly oil, has widened the trade deficit to $28.26 billion.
Foreign Direct Investment
Positive Economic Indicators
Net FDI inflows were significantly higher at $6.5 billion during April-May FY27, showing strong foreign investor interest.
Trade Deficit Concerns
Portfolio investment remained in net outflow, contributing to overall foreign investment outflows of $5.5 billion.
- Merchandise Exports (May 2026)
- $45.14 billion
- Merchandise Imports (May 2026)
- $73.40 billion
- Trade Deficit (May 2026)
- $28.26 billion
- Net FDI Inflows (April-May FY27)
- $6.5 billion
- Gross FDI Inflows (April-May FY27)
- $13.77 billion
- Portfolio Investment (April-May FY27)
- $12 billion (net outflow)
- NRI Deposits (May 2026)
- $165.96 billion
- NRI Inflows (April-May FY27)
- $1.33 billion