In terms of economics, import is any commodity brought into one country from another country in a legal way. The economic needs of the country, effective use of foreign currency are the basic factors which influence India's import policy.
Major Importing Partners of India
Most of the imports in India are from china which stands at 11.1%. Apart from china other major countries from which India imports are Saudi Arabia i.e. 7.5%, USA 6.6%, UAE 5.1%, Iran 4.2%, Singapore 4.2% and Germany 4.2%.
Major Indian Imports
The major imports of India are edible oil, newsprint, petroleum and crude products, crude rubber, fabrics, electronic goods, consumption Goods, Capital Goods etc., out of these the prime importing commodity is crude oil.
A decreasing trend is observed in the number of imports from January 2009 due to onset of recession in the U.S.A. and major developed countries of the world. It’s observed that the imports are still decreasing but at a diminishing rate as the major economies of the world are in their recovery phase.
In the month of September 2007, there was an abrupt decrease in the number of imports. This was mainly due to an increase in the prices of crude oil in the international market.
In the month of September 2008, there was a huge increase in the number of imports due to an increase in the price of crude oil in the international market.
Problems due to Large Import of Products
The regular imports of oil reflect the fact that India isn’t able to produce the quantity of oil required in India. Moreover the increase in imports of products also highlights the fact that the Indian domestic industries need to be developed. High cost of imports also put pressure on the foreign exchange reserves.