Q95
Indian EconomyExternal Sector & International Organisations
Which of the following accounts for the highest amount spent on Indian imports?
- a.Capital Goods
- b.Gold and Silver
- c.Electronic Goods
- d.Petroleum, oil and lubricants
Answer: (D) Petroleum, oil and lubricants
Answer as of 2023 — this may have changed since.
Petroleum, oil and lubricants (POL), mainly crude oil, is India's largest import item, making up roughly a quarter or more of the import bill, because India imports over 85% of its crude requirement and is the world's third-largest oil consumer and importer. Electronic goods, gold, machinery (capital goods), coal and chemicals follow. Since 2022–23 Russia has been the largest crude supplier, ahead of Iraq, Saudi Arabia and the UAE. On the export side, the leading items are engineering goods, petroleum products, and gems and jewellery.