Describe the major changes that have occurred in the commodity composition of India's imports during the period between 1960–2001 with examples.
India's foreign trade has undergone a great change during last 40 years. These are described below:
Positive change:
1. Petroleum and Petroleum Products:
In 1960-61 petroleum and its products accounted for 6.2% of total imports. This percentage rose to 28.7% in 2002-03. Reasons was price rise in petroleum and its products.
2. Chemicals and fertilizers : The import of chemicals also rose from 3.5% in 1961 to 6.9% in 2003. The import was necessary for increasing industrial output.
Negative change :
(i) Capital goods : Import of machineries, electrical machines, tools and equipments have come down in quantitative terms.
(ii) Food and allied products : The share in the import of these products has come down from 19.1% in 1960-61 to 4.6% in 2002-03.
(iii) Clothes and iron and steel : India is no longer imports clothes instead has become a net exporter on a large scale. The same is the story with iron and steel.
(iv) Raw material : Import of minerals, crude rubber, wood timber, ferrous minerals have also come down. The main reason for this reduction is the increase in the domestic production of these minerals.
185 Views
