A sector wise analysis of India’s import dependence and trade relations with other countries

Abstract

Background: This paper aims to identify key sectors that contribute to our import bill for import substitution including Crude Oil, Gold and Precious Metals, Steel, Organic Chemicals, Plastics and Electronics. The analysis has been aimed at studying these sectors in terms of production and export capabilities and have highlighted the import dependence in these sectors. A recommendation has been made regarding several sector-specific strategies for reducing import dependence by enhancing domestic production, based on an assessment of the specific needs and issues faced by each of the sectors. The paper has also touched upon our political and business relations with the countries from whom we have major import relations to get a better idea of the intricacies and the challenges we face in slowly moving towards our goal of self-reliance through these key sectors.