The Big Picture – Non-essential imports: How can they be substituted? Summary: ‘Make In India’ is now accompanied by plans to cut imports. Some key ministries have been asked by the PM to discourage and cut unessential imports and instead manufacture them within the country. Apart from helping to build a better manufacturing base and creating new employment, this move is also aimed to decrease the trade gap. India has got large untapped potential. A strong bureaucracy is needed for the task of selective targeting. At this point of time our imports are becoming reasonable due to fall in crude oil prices and fertilizers. Three important sectors where the imports need to be cut down are: Coal sector, Electronics and Hardware sector and Military Hardware. Negative Balance of Trade is not always a bad thing. It is because in a developing country like India when there is a deficit, it indicates that we are adding to domestic savings and tapping foreign investments. Unessential imports include Gold and Jewellery imports. Gold Imports have increased because of increase in the investment demands for gold along with normal demand. Prolonged deficits are not good for economy. Competitive advantage in manufacturing sector is often created by the government. There are provisions in WTO which allow for some kind of protection. To make sure that India remains competitive, more wings of the government need to act together. In the last 5 years exports have almost doubled. India is a part of liberal Trading order.