International Trade | Class 12 Geography Notes

Changing Patterns of the Composition of India's Import

India's import composition has shifted considerably since the 1950s and 60s. Initially, the country imported food grains, capital goods, machinery, and equipment due to domestic shortages. The success of the Green Revolution in the 1970s eliminated the need for food grain imports, which were replaced by fertilisers and petroleum imports. The energy crisis of 1973 caused petroleum prices to rise, increasing the import bill. Currently, petroleum products constitute the largest share of imports, reflecting industrial growth and higher living standards. Imports also include fertilisers, machinery, special steel, edible oils, chemicals, pearls, precious stones, gold, and non-metal ferrous metals. The import of capital goods has shown a steady decline, while edible oil imports remain high despite India being agriculturally rich, due to domestic demand exceeding supply. Sporadic international price rises also affect import costs. The import basket reflects India's industrialisation, consumption patterns, and resource needs.

📊 Diagram: Table 8.4 shows the percentage share of different commodity groups in India's imports from 2015-16 to 2021-22, highlighting the rise in fuel imports and decline in capital goods.

🧪 Activity: Arrange items in ascending or descending order based on import value in 2021-22; identify major and minor import items; discuss reasons for edible oil imports; identify import substitutes.

🔗 Connection: Leads to the discussion on the direction of India's trade and major trading partners.