Indian Import Data- Bleeding the economy

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The mentioned plans of the government might be seen as bad for the economy, but in reality these were plans what helped push back the foreign currency debacle of the late 1980’s.

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Indian Import Data- Bleeding the economy

  1. 1. Indian Import Data- Bleeding the economy Imports can be broadly be defined as the amount of goods that a country buys from one nation in exchange of a commonly accepted currency. Often the commonly accepted currency is the US Dollar or the Euro. In most of the cases the country buying the goods will offer to pay in its currency to the seller nation to reduce the budget deficit of the buying nation. Most of the nation discourages imports mainly for this nation. In the 1970-1980 India said that imports were ‘Bleeding the Economy’. This article will dwell on the truth of this statement and how this affected the economy and helped usher in the age of liberalization. Indian import data tells us that to meet the growing demand for goods in the country a large amount of imports were done. This drained the economy of precious US Dollars. A list of the things India imported before the age of import seclusion was: • Crude petroleum and related products thereof • Iron Ore • Animal and vegetable oils • Wheat • Rice • Jute • Power generation equipment and related products • Ready to use cloths and fabric materials All the above data has been taken from the Indian import data. The aggressive stance of India against imports was mainly done to facilitate two things: 1. Increase domestic production to meet demands : Indian import data tells us that the increasing domestic demand plan was only starting to work by 1978. The main objective of the Indian government with this plan was to give stimulus to domestic industry to not only meet domestic demand but also produce surplus which would be exported. This plan included giving stimulus like cash and infrastructure both to the farming sector and manufacturing sector (the two main sectors in the nation at that point of time). A glowing example to justify this plan is the Green Revolution in North India, which not only reduced India’s dependency on wheat exports but also gave the economy an opportunity export wheat and potatoes to other nations, thereby bringing in foreign currency. Some other impacts of this plan were:
  2. 2. • Increased sugarcane production in Maharashtra • Increased rice production in West Bengal and Tamil Nadu 2. Earn foreign currency by exporting more than imports: It has always been the goal of every nation to bring in more foreign currency to reduce the budget deficit. The foreign currency drain which finally hit India in the late 1980’s had already started by the early 1970’s. This was a plan not only to plug the drop in foreign currency but also to infuse more foreign currency into the economy. The Indian Import data was set to become less important for the country due to these plans but these plans back fired. To know more details about Indian import data, Indian export data, custom data, or any other import export data in India, you can visit here at www.seair.co.in Summary: The above mentioned plans of the government might be seen as bad for the economy, but in reality these were plans what helped push back the foreign currency debacle of the late 1980’s.

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