India's exports showed a remarkable improvement in May'18 led by higher exports of oil, pharma and engineering goods. Imports too increased but at a relatively lower pace as gold and precious stone imports fell. Non-oil-non-gold imports showed an improvement and are likely to remain buoyant this year as consumption demand improves further. Oil imports will also be higher. As a result, trade deficit is likely to expand further. This implies downward pressure on INR unless FPI inflows resume....