New Delhi, July 23 -- India's external sector entered FY27 with resilient merchandise exports and stronger foreign direct investment (FDI) inflows, although a rise in imports widened the merchandise trade deficit, according to the latest RBI Bulletin.

The bulletin showed that merchandise exports rose to USD 45.14 billion in May 2026, up from USD 43.72 billion in April, led by both oil and non-oil shipments. Non-oil exports increased to USD 36.74 billion in May from USD 33.98 billion a month earlier, indicating broad-based export activity.

Merchandise imports also increased during the month to USD 73.40 billion, compared with USD 71.93 billion in April, largely due to higher oil imports. As a result, the merchandise trade deficit widened...