In 1947-48, the leading items of India’s imports were machines, oil, grains, cotton, cutlery, hardware implements, chemicals, etc. They established 70% of India’s imports. Thereafter due to the importance on industrialization in the second 5-Year plan required the imports of capital goods.
Now, imports of India’s are broadly classified into following four categories:
· Petroleum Products
· Capital Goods
· Pearls and Precious Stones
· Iron and Steel
· Fertilisers
The composition of India’s imports can be summarised as follows:
1. Petroleum Products: Imports of petroleum oil and lubricants rose considerably from $ 5364 million in 1991-92 to $ 43,963 million i.e. more than eight times.
Because of high price of crude oil, the POL imports flew to $ 15,650 million in 2000-01. In 1990-91, petroleum products accounted for nearly 25% of total imports of India. In 2005-06, it has additionally amplified to nearly 31% of the total introduction of bill of India.
2. Capital Goods: The imports of capital goods were $ 3,610 million in 1991-92. In 1995-96 due to sharp increase in non-electrical equipment imports, the imports of capital goods jumped up to $ 8,458 million. Though due to decelerating domestic request imports of capital goods fell successive. The capital goods and connected items were 24.1% of the entire imports of India in 1990-91, which has derived slightly in 2005-06 to about 22.3%.
3. Pearls and Precious Stones: To meet the necessities of the gems and jewellery manufacturing pearls and precious stones are imported in large amounts. In 1990-91, the share of pearls and precious stones was 8.7% which has condensed in percentage terms to 6.4% in 2005-06.
4. Iron and Steel: The imports of iron and steel have weakened over the years in percentage terms. In 1990-91, the share of iron and steel imports was 5%, which has come down to 3% in 2005-06. This is because; a good quantity of iron ore is now removed in India which has reduced imports.
5. Fertilisers: Import of fertilisers in 1991-92 stood at $ 954 million. In 2003-04 spending on import of fertilizers was $ 635 million.
The imports of fertilisers have weakened, which specifies less dependence of India on introduced fertilisers. The share in total introductions of fertilisers was 4.1% in 1990-91, which came down to 1.5% in 2005-06.
Notes: Punjab State is predominantly an agricultural state with two-third of its population directly or indirectly dependent on agriculture. And, thus, helps in increasing the Indian Economy.
