India's major imports include crude oil, machinery, fertilizers, chemicals, gems, iron, and steel. The government of India has taken several steps to reduce import quantities and lower the trade deficit, including increasing import duties on gold, imposing restrictions on gold imports by banks, appealing to citizens to purchase less gold, and incentivizing exports to boost domestic production and reduce reliance on imports. The government is also developing domestic defense industries to gradually decrease arms imports and aiming to substitute some imports in industries like fashion and electronics.

1. The major Imports of India &
Steps Taken By Government of India to Reduce its Quantum.

2. Definition of Import
A good or service brought into one country
from another. Along with exports, imports
form the backbone of international trade.
The higher the value of imports entering a
country, compared to the value of exports,
the more negative that country's balance of
trade becomes.

3.  Freely importable items: For these items,
no import license is required. They can be
freely imported by an individual or a firm.
 Canalized items: These items can only be
imported by public sector firms. For
example petroleum products fall under
this category.
 Prohibited items: Items such as
unprocessed ivory, animal rennet and
tallow fat cannot be exported to India.
Imported goods are divided into the following categories:

4.  crude oil
 machinery
 military products
 fertilizers
 chemicals
 gems
 antiques and artworks.
India’s major Imports comprise of the following
 Iron
 Steel
 gold

5. Steps taken by GOI to reduce its Quantum
 The government may take more steps to reduce
gold imports such as banning sale of gold coins
by banks.
 The RBI imposed curbs on import of the yellow
metal by banks.
 It also put restrictions on banks and NBFCs for
providing loans against gold coins as well as
units of gold ETFs.
 The government increased import duty on gold
to 4 to 6%
 Finance minister appeals to people not to buy
so much gold

6.  There are a number of Industries in India which
offer some great import opportunities in spite of
the Indian government’s Import Substitution
policy to reduce the country’s reliance on imports.
 Fashion India is a great example of an industry
which is full of import opportunities. India
Shoes Electronics, India Furniture India and
Leather Industry In India
 India’s moves to reduce Iranian crude purchases
to less than 13 million tones in the current
financial year from 18.1 million tones last fiscal.
Steps taken by GOI to reduce its Quantum

7.  Government has taken a slew of initiatives to boost
exports and reduce imports to lower trade
deficit and thereby Current Account Deficit (CAD).
The government also announced measures such as
incentives for export promotion.
 India can also reduce its dependence on imports to
tap the gold lying with individuals and temples.
 India is drawing up policies to boost its defense
industry, as the government looks to increase local
arms purchases and reduce imports. India, the
world's biggest arms importer in recent years, plans
to spend around $100 billion over the next 10 year.
Steps taken by GOI to reduce its Quantum

8. FOR IMPORTS:
 Directorate General of Foreign Trade
 BIS for 68 Products
QUALITY REGULATIONS IN INDIA

9. Latest Imports in India (2013-14)
 78.75% of crude oil required in India for
petroleum products has to be imported for
the estimated demand in 2013-2014.
 India is likely to buy 1.45 million tonnes
sunflower oil in 2013/14, higher than the
previous record purchase of 1.1 million
tonnes in 2011/12.
 India imports most of its sunflower oil from
Ukraine and palm oil from Indonesia and
Malaysia.

10.  Gold imports into India, may be 750
tonnes in the fiscal year ending 31 March
2014, as government curbs take effect.
 Edible oil imports of world's top buyer
India are likely to rise 4 percent to a
record 10.7 million tonnes in 2013/14
due to growth in consumption.
 Indian power producers may import 82
million tonne (MT) coal in the current
fiscal to meet raw material requirements.
Continuous…………..