1. Decline in Percentage Share of Agricultural Products:

After independence, the percentage share of agricultural products in total exports has considerably declined. For instance, in 1970-71, agricultural products contributed 31% in total export earnings which in 2001-02 declined to 14.9%.

2. Decline in the Share of Conventional Items:

Before independence, conventional items comprise of Jute, tea, food grains and minerals contributed more than 41%. But in 2001-02, the share of these items taken together has come down to 16.7%. The main reasons for the decline are an increase in abnormal demand of food grains and raw materials due to an increase in population.

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3. Increase in Share of Manufactured Goods:

After independence, the share of manufactured goods in the total export earnings has considerably increased. In the financial year of 1970-71, the share of manufactured goods was 56% which in 2001-02 rose to 81.6%.

4. Increase in the Share of Petroleum Products and Minerals:

The percentage share of export earning in the total earnings is only 0.1 percent while share of minerals has been recorded to be 2.4 respectively in 2001-02.

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5. Increase in the Export of Gems and Readymade Garments:

Exports of gems and readymade garments had emerged as an important foreign exchange earner in recent years. The exports of gems enjoy the first place as of ready made garments, the second in the total export earnings of the country.

(ii) Composition of Imports:

The main items of import were machinery, oils, grains, pulses, cotton-raw and waste; vehicles, cutlery, hardware, implements and instruments, chemicals drugs and medicines, dyes and colours, other yarns and textile, fabric, paper, paper board and stationery and metals other than iron and steel manufactured. These imports constituted more than 70 per cent of total imports.

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The composition of imports considerably changed during the second plan as it introduced a programme of industrialization with heavy emphasis on the development of capital goods and basic industries. By and large, the imports of our country can be illustrated in the table.

Table. Change in Composition of India’s Imports (Selected items)

Commodity

1950-51

1990-91

2001-02

Iron & Steel

20

2013

3975

Machinery

91

1292

1719

Transport Equipment

41

1670

5482

Food grains

100

Nil

87

Non Electrical Machines

213

4240

15088

Fertilizers

12

1766

2964

Paper

4

226

2131

Petroleum

87

10816

66769

Non-ferrous Metals

1102

3086

Pearls etc.

3378

22046

Total

650

43198

245199