India Reduces Import Dependence in Key Manufacturing Sectors Amid Global Challenges
India's import dependence drops in key sectors amid global pressure

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India's import dependence is decreasing in vital sectors like electricals, chemicals, and consumer durables, according to a recent Bank of Baroda report. The import-to-net-sales ratio fell from 22.9% in FY19 to 22.3% in FY25, reflecting progress in self-reliance despite global supply chain pressures.
- 01The import-to-net-sales ratio for electricals dropped significantly from 22.7% in FY19 to 13.7% in FY25.
- 02In the chemicals sector, the import ratio decreased from 27.5% in FY19 to 22.5% in FY25, particularly for carbon black.
- 03Policy initiatives like Make in India and the India Semiconductor Mission 2.0 are bolstering domestic manufacturing.
- 04The decline in import dependence may help mitigate external commodity shocks, especially amid rising global prices.
- 05Consumer-oriented sectors like healthcare and FMCG show lower import intensity, providing some insulation from global disruptions.
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India is witnessing a decline in import dependence across key sectors, including electricals, chemicals, and consumer durables, as highlighted in a Bank of Baroda report. The overall import-to-net-sales ratio slightly decreased from 22.9% in FY19 to 22.3% in FY25, indicating a shift towards greater self-reliance. Notably, the electricals sector saw a significant drop in its import ratio from 22.7% to 13.7%, with cable imports decreasing from 21.8% to 12.5%. The chemicals sector also improved, with the import ratio for carbon black falling from 55% to 35.6%. These improvements are attributed to various policy measures aimed at enhancing domestic manufacturing capabilities, such as the Make in India initiative and the expansion of the Electronics Components Manufacturing Scheme. The report suggests that reducing import dependence could protect the Indian economy from external shocks, particularly as global commodity prices rise due to the ongoing West Asia crisis. However, certain sectors still remain highly import-dependent and will require ongoing monitoring.
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The reduction in import dependence can help stabilize the Indian economy against external commodity price shocks, particularly in key sectors.
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