Import partners and goods
India's imports and exports of goods to GDP stood at 33 percent in 2022. The country's leading import partners were China, United Arab Emirates, the United States, Saudi Arabia, and Iraq. Despite China being India's largest trading partner, the recurring conflicts between the two have paved the way for deeper integration of trade and investment from the United States. Unsurprisingly, imports from the United States have been increasing over the years, amounting to over 40 billion U.S. dollars in 2021.The country's leading import product was manufactures, which accounted for over 194 billion U.S. dollars, followed by fuel and mining products, and agricultural products. Due to the enormous demand in the energy sector, crude oil imports had been increasing over the years. India had a negative trade balance, where its imports surpassed its exports. However, all goods imported into the country are subjected to tariffs and tax rates based on the country of origin. However, the major import commodities are petroleum products, electronic goods, gold, and machinery goods.
Import trends
Over the years, it was evident that Indian exports were minimal compared to lucrative imports from the trading giant; however, stabilizing the economic partnership seems bleak. With the "Make in India" strategy, the government encouraged Indian companies to manufacture products. Despite the desi products being well received, the country still has a massive market for products made in the United States, Japan, and Germany.With the country's current economic slowdown and the ongoing impact of the coronavirus (COVID-19) on the Indian economy, industries and businesses beneficial to economic growth are the need of the hour. Unemployment decreased incomes, and frequent domestic lockdowns have drastically reduced consumer demand across the country. Besides, the prime minister has urged the citizens to be self-reliant and consume domestic products to benefit local businesses and save on foreign exchange.
