Skip to main content

Self reliant economy doomed by imports

 


Pandemic outbreaks came for rethinking world's fate for communication, travel and living standard. What's new normal is what will happen in a pandemic situation when all people of the world suffer. Consumer need is volatile where the economy is unsustainable. In the past several years this situation was getting handled by world top players. 

India imported US$480 billion worth of goods from around the globe in 2019, up by 22.8% since 2015 but down by -5.7% from 2018 to 2019. 


India's imports data by World top exports

The following product groups represent the highest dollar value in India’s import purchases during 2019. Also shown is the percentage share each product category represents in terms of overall imports into India.


Top Imports

1.      Mineral fuels including oil: US$153.5 billion (32% of total imports)

2.      Gems, precious metals: $60 billion (12.5%)

3.      Electrical machinery, equipment: $50.4 billion (10.5%)

4.      Machinery including computers: $44.1 billion (9.2%)

5.      Organic chemicals: $20.5 billion (4.3%)

6.      Plastics, plastic articles: $14.6 billion (3.1%)

7.      Iron, steel: $11.6 billion (2.4%)

8.      Animal/vegetable fats, oils, waxes: $9.6 billion (2%)

9.      Optical, technical, medical apparatus: $9.5 billion (2%)

10.  Fertilizers: $7.3 billion (1.5%)

India’s top 10 imports accounted for about four-fifths (79.4%) of the overall value of its product purchases from other countries.

Imported fertilizers posted the fastest increase in value among India’s top 10 import categories, up 23.3% from 2018 to 2019. The other top category to gain was machinery including computers via a 1.6% improvement.

Leading the decliners were organic chemicals (down -9.3%), mineral fuels including oil (also down -9.3%) then gems and precious metals (down -7.8%).
Note that the results listed above are at the categorized two-digit Harmonized Tariff System (HTS) code level. 

Fuel

In 2019, Indian importers spent the most on the following 10 subcategories of mineral fuels-related products.

11.  Crude oil: US$102.3 billion (down -11.1% from 2018)

12.  Coal, solid fuels made from coal: $23 billion (down -6.5%)

13.  Petroleum gases: $17.4 billion (down -8.8%)

14.  Processed petroleum oils: $6.4 billion (up 11.8%)

15.  Petroleum oil residues: $2.6 billion (up 19.9%)

16.  Coke, semi-coke: $1.1 billion (down -38.3%)

17.  Coal tar oils (high temperature distillation): $490.2 million (down -17%)

18.  Petroleum jelly, mineral waxes: $117 million (down -4.2%)

19.  Tar pitch, coke: $37.1 million (down -57.7%)

20.  Electrical energy: $25.5 million (down -18.2%)

Among these import subcategories, Indian purchases of petroleum oil residues (up 19.9%) and processed petroleum oils (up 11.8%) grew from 2018 to 2019.

 

Precious

In 2019, Indian importers spent the most on the following 10 subcategories of gems and precious metals.

21.  Gold (unwrought): US$32.2 billion (up 0.9% from 2018)

22.  Diamonds (unmounted/unset): $22 billion (down -17.4%)

23.  Silver (unwrought): $3 billion (down -21.7%)

24.  Precious/semi-precious stones (unstrung): $1.3 billion (up 19.9%)

25.  Jewelry: $601.8 million (down -9.2%)

26.  Synthetic precious stones: $480 million (up 50.8%)

27.  Platinum (unwrought): $284.5 million (down -0.7%)

28.  Imitation jewelry: $40.4 million (up 0.3%)

29.  Precious stone dust, powder: $26.2 million (down -14.2%)

30.  Pearls: $21.4 million (down -90.2%)

Among these import subcategories, Indian purchases of synthetic precious stones (up 50.8%), unstrung precious and semi-precious stones (up 19.9%) then unwrought gold (up 0.9%) grew at the fastest pace from 2018 to 2019.

Electronic

In 2019, Indian importers spent the most on the following 10 subcategories of electric items including consumer electronics.

31.  Phone system devices including smartphones: US$13.6 billion (down -27.7% from 2018)

32.  Integrated circuits/microassemblies: $9.9 billion (up 36.2%)

33.  Solar power diodes/semi-conductors: $3.2 billion (down -9%)

34.  Electrical converters/power units: $2.2 billion (up 1.3%)

35.  TV receivers/monitors/projectors: $2 billion (down -3.5%)

36.  TV receiver/transmit/digital cameras: $1.9 billion (up 20.3%)

37.  Electric storage batteries: $1.7 billion (down -1%)

38.  Lower-voltage switches, fuses: $1.5 billion (down -3.8%)

39.  TV/radio/radar device parts: $1.5 billion (up 18.9%)

40.  Unrecorded sound media: $1.4 billion (down -5.3%)

Among these import subcategories, Indian purchases of integrated circuits and microassemblies (up 36.2%), TV receivers, transmitters and digital cameras (up 20.3%) then TV radio and radar device parts (up 18.9%) grew at the fastest pace from 2018 to 2019.

Machinery

In 2019, Indian importers spent the most on the following 10 subcategories of machinery including computers.

41.  Computers, optical readers: US$6.6 billion (up 4% from 2018)

42.  Turbo-jets: $3.9 billion (up 28.6%)

43.  Miscellaneous machinery: $2.1 billion (down -4.6%)

44.  Air or vacuum pumps: $1.9 billion (up 6.1%)

45.  Computer parts, accessories: $1.6 billion (up 1.4%)

46.  Taps, valves, similar appliances: $1.5 billion (up 4.1%)

47.  Printing machinery: $1.4 billion (down -10%)

48.  Rubber/plastic article making machines: $1.4 billion (up 35.4%)

49.  Machinery parts: $1.4 billion (down -5.8%)

50.  Transmission shafts, gears, clutches: $1.2 billion (down -0.7%)

Among these import subcategories, Indian purchases of rubber or plastic article-making machines (up 35.4%), turbo-jets (up 28.6%) then air or vacuum pumps (up 6.1%) grew at the fastest pace from 2018 to 2019.


 

 


Popular posts from this blog

Global Impact of Coronavirus

One doomsday scenario in which the coronavirus outbreak could cost the global economy up to $2 trillion this year. After $2 trillion shortfall in global income, COVID-19 affects oil-exporting countries and also other commodity exporters badly. China might recover from COVID-19 impact by lending as China is a crucial source of long term borrowing for developing countries.  COVID-19 has brought global recession by depressing global annual growth this year to below 2.5%, the recessionary threshold for the world economy. Central Banks are not in a position to solve this crisis alone. Their macroeconomics policy will need public investment and targeted welfare support. At present scenario, coronavirus has surpassed 100000 confirmed cases worldwide, it will make the impact more severe to the global economy.

What is BS IV

India has been following the European (Euro) emission norm, through with a lag of 7 years. BS4 norms are applicable in the most of cities in which required grade of fuel is available and rest part of the country still conforms to BS3 standard. On 29 March 2017, the Supreme Court banned the sale and registration of vehicles which were not compliant with BS4 norms. Some facts about BS3 & BS4 Although Indian automobile manufacturer had 8,24,275 BS3 vehicle inventories which market value had Rs.12,000 crore. Out of these 96,724 was a commercial vehicle, 6,71,308 were 2 Wheelers, 40,048 were 3 wheelers and 16,198 were passenger cars.  There was a need to invest Rs. 40,000 crore for upgrading BS3 standard fuel to BS4 standard fuel. Automobile manufacturer invested an additional Rs. 30,000 crore in two-component diesel particulate filter and selective catalytic reduction module. BS4 petrol and diesel have only 50ppm of sulfur as compared to 150ppm for petrol and 350ppm for die