India’s Rising Import Dependence: An Analysis of its Current Status, Concerns, and Strategies

Abstract

India could not reduce its import dependence despite adopting an inward-looking import-substitution development strategy for four decades (1950-51 to 1990-91) and it was on the rise even during the export-promotion regime (since 1991-92). In this context, this paper presented a detailed analysis of India's current import dependence dynamics. Further, its major concerns and way-outs were also outlined for enabling India to achieve the objectives of Atmanirbhar Bharat Abhiyan. The study found that India's imports registered considerably higher growth than its export growth, especially since 1991, by taking advantage of trade liberalisation and rising income levels. The growth of non-oil exports and oil prices partly resulted in a consistent rise in India's import dependence. India's imports were concentrated only on a few commodities and markets; however, some new commodities and markets were added to the import basket. In this view, planned and proactive policy intervention is required to reduce import dependence and become a self-reliant economy.