According to a report by the economic think tank Global Trade Research Initiative (GTRI), India’s merchandise imports for the fiscal year ending March 2023 (FY23) are projected to exceed USD 710 billion, up from USD 613 billion in FY22 (2021-2022), a 15.8% increase over last year.
- Six product categories such as Crude oil, coal, diamonds, chemicals, electronics, and machinery—accounted for 82% of India’s total FY23 merchandise imports, which is primarily responsible for the increase in inbound shipments of merchandise.
Imports increased from USD 549.96 billion in April–February 2021–22 to USD 653.47 billion in April–February 2022–23.
Estimated value of six Key Product Categories
- Petroleum, Crude Oil – USD 210 Billion
- Coal, Coke – USD 51 Billion
- Diamonds, Precious Metals – USD 77 Billion
- Chemicals, Plastics – USD 98.2
- Electronics – USD 69 Billion
- Machinery – USD 76 Billion
| India’s imports -US$ billion | ||||
| S.No | Product Categories | FY22 | FY23 | %Growth |
| 1 | Coal, Crude oil, products | 180.86 | 259.79 | 43.6 |
| 2 | Textiles, Apparels | 8.64 | 10.44 | 20.8 |
| 3 | Electronics, electrical | 60.76 | 68.93 | 13.4 |
Key Points:
i.Petroleum crude and products – The estimated value of petroleum imports is USD 210 billion, which includes crude oil imports valued at USD 163 billion, LNG imports valued at USD 17.6 billion, and LPG imports valued at USD 14 billion.
- Imports of crude increased by 53% over FY22.
- The main crude oil suppliers to India are: Iraq (USD 36 billion), Saudi Arabia (USD 31 billion), Russia (USD 21 billion), the United Arab Emirates (UAE) (USD 7 billion), and the United States (US) (USD 11.9 billion).
- Imports of petroleum crude and products from Russia surged by 850% over FY22.
ii.Coke , coal – During FY23, India’s coke and coal imports are estimated to reach USD 51 billion.
- India imports thermal coal, which is used to generate electricity, as well as coking coal, which is used as a raw material for the manufacturing of steel.
- Coking coal imports could surpass USD 20.4 billion, an increase of 87% from FY22.
- Imports of steam coal may surpass USD 23.2 billion, a 105% rise from FY22.
iii.Diamond, Gold & Silver – The value of India’s diamond imports was estimated at USD 27.3 billion in FY23, yet the majority of them were exported, bringing in USD 24 billion for the country.Major imports are rough(US$ 18.5 billion) and Cut and Polished diamonds(8.8 billion).
- Despite being the world’s second largest gold importer after China, India’s gold imports have decreased by 33% from USD 56.4 billion in calendar year 2021 (CY2021) to USD 37.7 billion in CY2022, owing to an increase in import duties.
- India’s Silver imports have risen from US$ 2.1 billion in CY2021 to US$6.3
billion in CY2022, an increase of 207%.
iv.Chemicals, pharmaceuticals, plastics, and rubber account for USD 98.2 billion, or nearly 13.85% of India’s imports.
- Organic chemicals, such as Active Pharmaceutical Ingredients (APIs) (USD 30 billion), fertilizers (USD 17 billion), and plastics (USD 22 billion) are major imports.
v.Machinery, electronics, and telecommunications account for USD 135 billion, or nearly 20.4% of India’s imports.
- Machinery accounts for $76 billion or nearly 10.7 percent of India’s imports.
- Electronics, including Telecom equipment, account for $67 billion or almost 9.7
percent of India’s imports.
vi.India’s imports of steel, metals, ores, and mineral groups are projected to be USD 51 billion.Vegetable oil and pulses remain the most significant imports.
- The report has urged India to be cautious of subsidised imports since China, Korea, and Japan have excess capacity and also because exports to the EU would be restricted due to carbon border taxes.
vii.In FY23, imports related to the agricultural sector are projected to be USD 33.3 billion.
Major Suppliers to India
| S.No. | Country/Region | Import | Export | Balance |
|---|---|---|---|---|
| 1 | China | 102.6 | 15.2 | -87.5 |
| 2 | United Arab Emirates (UAE) | 52.9 | 31.3 | -21.5 |
| 3 | United States of America (USA) | 50.9 | 80.1 | 29.2 |
| 4 | Saudi Arabia | 43.9 | 10.1 | -33.9 |
| 5 | Iraq | 37.6 | 2.5 | -35.1 |
The Export-Import Deficit of India
i.In terms of imports, 22 of India’s top 25 trading partners account for a greater share of its imports than the exports.
ii.India has the largest deficit, with China surpassing USD 87.5 billion.
- Only three categories account for 65 % of China’s exports to India: Electronics (USD 31 Billion), Machinery (USD 21.7 Billion), and Organic Chemicals (USD 13.6 Billion).
iii.Plastics, fertilizers, medical supplies, and scientific instruments are among important import categories.
iv.India primarily imports from China, the UAE, the US, Saudi Arabia, Iraq, Russia, Indonesia, Singapore, and South Korea.
Recent Related News:
i.In February 2023, India and Nepal signed an agreement to increase the power import and export capacity through the Dhalkebar-Muzaffarpur transmission line by 200 MW, increasing it from 600 megawatts (MW) to 800 MW.
ii.The agreement between India and Nepal was signed on 18th February 2023, during the 10th India Nepal Energy Secretary-level Joint Steering Committee (JSC) meeting in Mount Abu, Rajasthan.
About Global Trade Research Initiative (GTRI):
GTRI’s mission is to produce high-quality, jargon-free outputs for governments and industry on trade, technology, and investment issues from the standpoint of development and poverty reduction.
Co-Founder – Ajay Srivastava
