Examining Trends of Indian Imports during the Period of 2002-2012
Journal of Economics Business and Management
Any country whether, rich or poor, small or big, cannot be completely self-sufficient. Irrespective of its position on the ladder of power, every nation needs either raw material or finished goods in order to meet internal demands. On the other hand, the less developed nations benefit due to their costeffectiveness, making trade a win-win for both. In short, every country is involved in import-export transactions. International trade has evolved over the years, while becoming more
... more sophisticated, convenient and relatively safer. Risks have minimized due to a better legal structure pertaining to international trade which aims at protecting, both importers and exporters. Regulating and governing bodies such as the World Trade Organization (WTO) have streamlined the export-import system. Trade agreements like the North American Free Trade Agreement (NAFTA) have promoted growth of the foreign trade in various countries. Now it is relatively easier for smaller countries to go beyond borders and compete in the global market. This paper attempts to explore the behavior of Indian imports of chief commodities during the period 2002-2012 while ascertaining its buying patterns within this period. The paper also looks at the corresponding trends of Balance of Payments in order to get a clearer picture of the international trade scenario. The demand for more imported products is growing exponentially and businesses are taking these import-export opportunities seriously. However, the import demand is studied, keeping in mind the current situation of India as it gives a better idea about the factors affecting the same. Hence, the paper also looks at determining the factors affecting import demand by examining the current Indian economic situation. Index Terms-Imports, international trade, demand factors, exports.