Question

Describe the composition of the import trade of India.

Answer 1

Machine and equipment, special steel, edible oil, and chemicals largely make up the import basket. There has been a steep rise in petroleum product imports. It is used not only as a fuel but also as an industrial raw material. It indicates the tempo of rising industrialisation and a better standard of living. Sporadic price rise in the international market is another reason for the same. Capital goods imports continued to increase due to rising demand in the export-oriented industrial and domestic sectors. Non-electrical machinery, transport equipment, metal manufacturers, and machine tools were the main categories of capital goods. Import of food and allied products declined, with a fall in edible oil imports. Other major items of India’s import include pearls and semi-precious stones, gold and silver, metalliferrous ores and metal scrap, non-ferrous metals, electronic goods, etc.