Imports to India - statistics & facts
India has engaged in trade agreements with different nations throughout the world, to increase its international trade. As one of the fastest-growing economies, the country is an emerging market on the global front. Despite producing goods and services domestically, it is challenging to cater to the country's ever-growing population.
Moreover, trade with other countries is essential for economic well-being in terms of reducing production costs and fostering competition. India’s international trade policy has always emphasized a significant increase in the country’s share of global merchandise trade.
Crude petroleum and mineral fuels were the major imported goods in the country. It should be noted that India ranks third as the largest consumer of crude oil in the world. The substantial imports of oils and fuels reflect the limited domestic production, rising demand, and the essential role of oils and minerals in industrial development, transportation, and the economic growth of the country.
Another significant commodity imported is gold and precious metals. India is the world’s second largest consumer of gold. Jewelry making, gold investment, and the precious metal’s cultural importance are the major drivers of India’s gold demand. Moreover, the demand rises in particular during the festive season.
Even though the “Make in India” initiative has impacted import trends, the trade balance remains negative with India’s imports exceeding exports. However, the strategy has instigated transition in the country's trade dynamics, to improve India’s manufacturing competitiveness on the international scale.
Moreover, trade with other countries is essential for economic well-being in terms of reducing production costs and fostering competition. India’s international trade policy has always emphasized a significant increase in the country’s share of global merchandise trade.
Import partners and their contribution
India has strategically balanced economic and geopolitical issues, as reflected by the country’s dynamic import partnerships. Despite restriction on some Chinese products imports, China continues to be the largest source of imports to India, accounting for about 14 percent of the overall imports. Other major import partners were Russia, the United Arab Emirates, and the United States. The Indian government is working on diversifying trade partnerships to maintain resilience during global disruption.Crude petroleum and mineral fuels were the major imported goods in the country. It should be noted that India ranks third as the largest consumer of crude oil in the world. The substantial imports of oils and fuels reflect the limited domestic production, rising demand, and the essential role of oils and minerals in industrial development, transportation, and the economic growth of the country.
Another significant commodity imported is gold and precious metals. India is the world’s second largest consumer of gold. Jewelry making, gold investment, and the precious metal’s cultural importance are the major drivers of India’s gold demand. Moreover, the demand rises in particular during the festive season.
Impact of “Make in India”
An overall decline in imports by over five percent was seen in the financial year 2024. The “Make in India” initiative has had a major influence on import trends. The government objective behind the initiative was to encourage Indian companies to promote domestic manufacturing, therefore reducing dependency on imports. For the first time, major electronics companies such Samsung, Apple, and Whirlpool reduced their imports to India in the financial year 2024. The consumer electronics and telecommunication sectors are undergoing transformation due to an increase in domestic manufacturing units and the development of new players.Even though the “Make in India” initiative has impacted import trends, the trade balance remains negative with India’s imports exceeding exports. However, the strategy has instigated transition in the country's trade dynamics, to improve India’s manufacturing competitiveness on the international scale.
