Offsetting imports

In the last ten years, India's imports have surged from $52 billion to an estimated $475 billion in 2011-12. Even relative to the size of its GDP, their share has risen from just over a tenth to well above a quarter during this period. This trend has, quite naturally, raised concerns, both from a balance-of-payments sustainability standpoint as well as their possible opportunity costs for domestic manufacturing. It has also prompted the Government to draft a National Policy on Offsets that seeks to leverage India's position as a large importer, by linking high-value purchases to counter-trade obligations on the part of the foreign sellers.

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