The mentioned plans of the government might be seen as bad for the economy, but in reality these were plans what helped push back the foreign currency debacle of the late 1980’s.

1. Indian Import Data- Bleeding the economy
Imports can be broadly be defined as the amount of goods that a country buys from one
nation in exchange of a commonly accepted currency. Often the commonly accepted
currency is the US Dollar or the Euro. In most of the cases the country buying the goods
will offer to pay in its currency to the seller nation to reduce the budget deficit of the
buying nation. Most of the nation discourages imports mainly for this nation. In the
1970-1980 India said that imports were ‘Bleeding the Economy’. This article will dwell
on the truth of this statement and how this affected the economy and helped usher in
the age of liberalization.
Indian import data tells us that to meet the growing demand for goods in the country a
large amount of imports were done. This drained the economy of precious US Dollars. A
list of the things India imported before the age of import seclusion was:
•
Crude petroleum and related products thereof
•
Iron Ore
•
Animal and vegetable oils
•
Wheat
•
Rice
•
Jute
•
Power generation equipment and related products
•
Ready to use cloths and fabric materials
All the above data has been taken from the Indian import data. The aggressive stance
of India against imports was mainly done to facilitate two things:
1. Increase domestic production to meet demands :
Indian import data tells us that the increasing domestic demand plan was only
starting to work by 1978. The main objective of the Indian government with this
plan was to give stimulus to domestic industry to not only meet domestic
demand but also produce surplus which would be exported. This plan included
giving stimulus like cash and infrastructure both to the farming sector and
manufacturing sector (the two main sectors in the nation at that point of time). A
glowing example to justify this plan is the Green Revolution in North India, which
not only reduced India’s dependency on wheat exports but also gave the
economy an opportunity export wheat and potatoes to other nations, thereby
bringing in foreign currency. Some other impacts of this plan were:

2. •
Increased sugarcane production in Maharashtra
•
Increased rice production in West Bengal and Tamil Nadu
2. Earn foreign currency by exporting more than imports:
It has always been the goal of every nation to bring in more foreign currency to
reduce the budget deficit. The foreign currency drain which finally hit India in
the late 1980’s had already started by the early 1970’s. This was a plan not only
to plug the drop in foreign currency but also to infuse more foreign currency into
the economy.
The Indian Import data was set to become less important for the country due to these
plans but these plans back fired.
To know more details about Indian import data, Indian export data, custom data, or any
other import export data in India, you can visit here at www.seair.co.in
Summary:
The above mentioned plans of the government might be seen as bad for the economy,
but in reality these were plans what helped push back the foreign currency debacle of
the late 1980’s.