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India's FY27 Trade Deficit Narrows to $7.81B as Exports Surge

India began FY27 with strong export growth as overall exports rose to $80.80 billion in April 2026. The country's trade deficit narrowed sharply to $7.81 billion from $11.16 billion a year ago. Merchandise exports increased 13.8% to $43.56 billion while services exports grew 13.4% to $37.24 billion. China remained India's top import source with imports rising to $11.97 billion during the month.

Key Points: India FY27 Trade: Exports Rise, Deficit Narrows to $7.81B

  • Overall exports rise to $80.80B in April 2026 from $71.13B a year ago
  • Trade deficit narrows to $7.81B from $11.16B
  • Merchandise exports up 13.8% to $43.56B
  • China remains top import source at $11.97B
2 min read

FY27 kicks off with strong export momentum, narrower YoY trade deficit in April

India's overall exports hit $80.80B in April 2026, narrowing trade deficit to $7.81B. Merchandise exports up 13.8%, services exports rise 13.4%.

"India's overall exports, including merchandise and services, stood at USD 80.80 billion in April 2026 - Commerce Ministry"

New Delhi, May 15

India began FY27 on a strong trade note, with overall exports rising to USD 80.80 billion in April 2026 and the country's overall trade deficit narrowing year-on-year to USD 7.81 billion, according to data released by the Commerce Ministry on Friday.

India's overall exports, including merchandise and services, stood at USD 80.80 billion in April 2026, up from USD 71.13 billion in April 2025, according to data released by the Commerce Ministry on Friday.

India's overall imports during the month stood at USD 88.61 billion, up from USD 82.29 billion a year ago.

However, despite the rise in imports, the country's overall trade deficit narrowed sharply to USD 7.81 billion in April 2026 from USD 11.16 billion a year ago, aided by strong growth in exports.

The data showed that merchandise exports increased to USD 43.56 billion in April 2026 from USD 38.28 billion in the same month last year, while services exports rose to USD 37.24 billion from USD 32.85 billion.

On the import side, merchandise imports climbed to USD 71.94 billion in April 2026 against USD 65.38 billion a year ago. Services imports, however, eased slightly to USD 16.66 billion from USD 16.91 billion.

According to the Commerce Ministry data, non-petroleum merchandise exports registered a growth of 9.01 per cent in April 2026 compared to April 2025. Non-petroleum merchandise imports rose 19.33 per cent during the same period.

Among key export sectors, engineering goods exports increased to USD 10.35 billion in April 2026 from USD 9.52 billion a year ago, while electronic goods exports rose sharply to USD 5.18 billion from USD 3.69 billion. Petroleum product exports also increased to USD 9.59 billion from USD 7.12 billion.

On the import front, electronic goods imports rose to USD 12.78 billion from USD 9.25 billion, while gold imports surged to USD 5.63 billion from USD 3.10 billion in April 2025.

The data also showed that India's exports to the United States rose marginally to USD 8.48 billion in April 2026 from USD 8.38 billion a year earlier. Exports to Singapore jumped to USD 3.20 billion from USD 1.14 billion, while exports to the UAE declined to USD 2.19 billion from USD 3.43 billion.

China remained India's top import source during the month, with imports rising to USD 11.97 billion from USD 9.91 billion a year ago. Imports from Russia also increased to USD 7.36 billion from USD 6.23 billion.

The Commerce Ministry data further showed that India's total trade during FY 2025-26 reached a record USD 863.1 billion, compared to USD 825.3 billion in FY 2024-25, registering a growth of 4.6 per cent.

- ANI

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Reader Comments

N
Nisha Z
👍 Good news for the economy! But with gold imports surging to $5.63 billion, that's a lot of money leaving the country. Maybe we need to promote more domestic jewellery brands or alternative investments.
V
Varun X
Interesting to see exports to Singapore jumping from $1.14B to $3.20B—that's huge! Looks like SE Asia is becoming a strong partner. Meanwhile, exports to UAE dropped... hope that's temporary.
M
Matthew K
Impressive numbers all around! The electronic goods export surge—from $3.69B to $5.18B—really shows how the PLI schemes are working. Now we need to reduce the import dependence on China ($11.97B). That's still our Achilles' heel.
S
Sneha F
Record trade of $863.1B in FY26—wow! But let's not get too carried away. The deficit in April was $7.81B, which is better than last year, but still a lot. Need to do more to boost exports of value-added products, not just raw materials.
D
Deepak U
Engineering goods up, electronics up, petroleum products up—good diversification. But US exports only rose marginally? That's a bit concerning given the trade tensions globally. Hope we're not caught in a tariff war.
J
James A

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