Imports
Imports are foreign goods and services bought by citizens, businesses, and the government of another country. If a country imports more than it exports it runs a trade deficit. If it imports less than it exports, that creates a trade surplus. When a country has a trade deficit, it must borrow from other countries to pay for the extra imports.
A mature economy should aspire to become a net exporter as:
- Imports make a country dependent on other countries' political and economic power. That's especially true if it imports commodities, such as food, oil, and industrial materials. It's dangerous if it relies on a foreign power to keep its population fed and its factories humming. For example, the United States suffered a recession when OPEC embargoed its oil exports.
- Countries with high import levels must increase their foreign currency reserves to pay for the imports. This can affect the domestic currency value, inflation, and interest rates.
- Domestic companies should be able to compete with foreign companies that import similar goods and services to their businesses.
Imports are foreign goods and services bought by citizens, businesses, and the government of another country. If a country imports more than it exports it runs a trade deficit. If it imports less than it exports, that creates a trade surplus. When a country has a trade deficit, it must borrow from other countries to pay for the extra imports.
A mature economy should aspire to become a net exporter as:
- Imports make a country dependent on other countries' political and economic power. That's especially true if it imports commodities, such as food, oil, and industrial materials. It's dangerous if it relies on a foreign power to keep its population fed and its factories humming. For example, the United States suffered a recession when OPEC embargoed its oil exports.
- Countries with high import levels must increase their foreign currency reserves to pay for the imports. This can affect the domestic currency value, inflation, and interest rates.
- Domestic companies should be able to compete with foreign companies that import similar goods and services to their businesses.
SUBJECT Variables
IMPORTS
- The total value of imports (goods and services) dropped to USD 511.1 billion in 2020-21 from USD 603 billion a year earlier.
- Total imports in 2020-21 were 15.2% lower than a year ago, marking the second consecutive year of de-growth.
- The total value of all goods (merchandise) imports fell from USD 474.7 billion in 2019-20 to USD 393.6 billion in 2020-21 - a 17.1% decline.
- Services imports recorded an 8.4% decline in 2020-21 given the USD 10.7 billion drop in the value of total services imports
IMPORT COMPOSITION
TO READ THE FULL ARTICLE
Get full access to the exciting content on The Mirrority by logging in
Support independent journalism
Even the very best of media houses in our country today are yielding to the pressure of click-bait journalism in order to survive. More than ever before, our country needs journalism that is independent, fair and non-pliant to the bureaucracy. Such journalism needs the support of like-minded readers like you to help us survive editorially and financially.
Whether you live in India or India lives inside you, help us continue to produce quality journalism with your contribution.
CONTRIBUTE