Composition of imports

In 1947-48, the main items of India’s imports were: machinery of all kinds; oils grains, pulses and flour; cotton, vehicles (excluding locomotives); cutlery, hardware, implements and instruments; chemicals, drugs and medicines; dyes and colors; other yarns and textile fabrics; paper, paper board and stationary; and metals other than iron and steel, etc. 

These imports together constituted more than 70% of all imports. 

The initiation of planning process in the country in 1951-52, more specifically the beginning of the Second Five Year plan in 1956-57 brought about a considerable change in the composition of imports. 

The second plan introduced a program of industrialization with heavy emphasis on the development of capital goods and basic industries. 

As a result, it became necessary to import capital equipment in large quantities. 

After some years, spare parts, materials and machinery had to be imported in substantial quanties to keep the equipment in working order. 

Imports of the country have been divided into four groups: 

1. Food and live animals chiefly for food, 

2. Raw materials and intermediate manufactures, 

3. Capital goods and 

4. Other goods. 

The total imports in 1960-61 were $ 2,353 million of which the share of the above groups was 19.1, 47.0, 31.7 and 2.2 per cent respectively. 

There have been significant changes in the relative importance of these groups over time. 

Important facts regarding the composition of different import items are: 

1. There has been a substantial rise in the import expenditure on POL (petroleum, oil and lubricants). 

POL accounted for only 6.1 per cent of capital expenditure in 1960-61 increased to 41.9 per cent in 1980-81 due to two hikes in oil prices in 1970s – one in 1973-74 and the other one in 1978-79. 

The share of POL imports in total imports expenditure declined considerably to 25 per cent in 1991-92. 

In 2010-1, imports of POL were $ 1,05,964 million which was 28.7 per cent of total import expenditure. 

2. Imports of non-ferrous metals stood at $ 46,677 million which was 12.6 per cent of total import expenditure. 

3. Import expenditure on non-electrical machinery, apparatus and appliances’ was 15.8 per cent in 1970-71. In 1010-11, the share of non-electrical machinery, apparatus and appliances’ in total expenditure was 7.1 per cent. 

4. The imports of pearls, precious and semi-precious stones accounted for 11.3 per cent of import expenditure and occupied second place. In 2010-11, the imports of pearls, precious and semi-precious stones stood at $ 34,620 million which was 9.4 per cent of total import expenditure. 

5. The imports of edible oils accounted for 4.4 per cent of total import expenditure in 1987-88. In 2010-11, imports of edible oils were of $ 6,551 million which was 1.8 per cent. 

6. The imports of iron and steel rose from $ 194 million in 1970-71 to$ 1,178 million in 1990-91. In 2010-11, their share in total import expenditure was 2.8 per cent. 

7. Import expenditure on fertilizers and fertilizer materials increased considerably from $ 113 million in 1970-71 to $ 1,683 million in 1995-96. Its share in total import expenditure stood at 1.9 per cent in 2010-11. 

8. The share of food grains in imports stood at 16 per cent in 19660-61. In 2010-11, imports of food grains were merely $ 119 million.