India’s merchandise exports surged 26% in August, with the first five months of FY27 reflecting an underlying momentum. But its import bill too is rising. So, policy should not merely focus on the size of the trade deficit, but on whether imports are strengthening India’s productive capacity, explains Ajay Sahai Is there an export momentum? The encouraging part in the August numbers is not merely the 26.1% increase in merchandise exports to $43.81 billion, but the breadth of the growth.