Import

  • Due to weak economic outlook, India’s imports have contracted by -9.2%.
  • A sharp fall in electronics and automobile sales, the imports of intermediary goods in these sectors are impacted.
  • With the ‘self-reliant India’ initiative, India will try to reduce trade deficit with China.
  • India has a trade deficit of $50 billion with China in FY20.
  • In addition, as oil imports accounts for around 15% in overall imports, fall in oil price in the international market will lower the import bills.
  • However, this will be offset by weak rupee in some extent.
  • Considering these factors, we are expecting the overall imports to subside by -4.2% during the FY21.