Foreign Trade Gains Momentum as India‑UK CETA Takes Effect, Says RBI

The RBI highlighted a surge in foreign trade activity in its latest monthly bulletin. Export and import figures rose sharply in the first quarter of the 2026‑27 fiscal year, keeping the trade engine humming.

The launch of the India‑UK Comprehensive Economic and Trade Agreement (CETA) has opened new avenues for bilateral commerce, and ongoing negotiations on other trade pacts are expected to add further impetus.

Despite global macro‑economic challenges, the external sector’s risk indicators remain solid, reflecting a steady flow of foreign portfolio and direct investment.

Retail price inflation saw only a marginal rise in June, while core inflation stayed subdued, bolstered by a stable liquidity environment that supports credit growth.

The RBI’s assessment underscores that strong external inflows and a stable external balance sheet are reinforcing India’s growth story.