The report said that while the overall import intensity of India Inc has remained largely unchanged over the years, sector-level data shows a gradual shift towards greater self-reliance.
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“Though the headline imports to net sales ratio is flat, yet sector specific ratio has fallen especially where import dependency is higher,” the report noted.
The study analysed 1,372 non-financial companies and found that India’s overall import-to-net-sales ratio stood at 22.3 per cent in FY25, compared with 22.9 per cent in FY19.
However, the report highlighted significant improvement in several sectors where imported inputs had historically played a major role.
For electricals, the import-to-net-sales ratio fell sharply to 13.7 per cent in FY25 from 22.7 per cent in FY19. Within the sector, “the import intensity of cable has gone down to 12.5% from 21.8% in FY19,” while “for electronic components as well, it has gone down substantially from 31.5% to 25.8% in FY25.”The chemicals sector also recorded a notable decline in import dependence, with the ratio falling to 22.5 per cent in FY25 from 27.5 per cent in FY19.
According to the report, “major reduction happened for Carbon black (from import to net sales ratio of 55% in FY19, it went down to 35.6% in FY25).”
The report noted that carbon black is an important intermediate input used in tyre manufacturing, plastics, electronics and batteries.
iStockMake in India efforts showing results as import dependence falls in key sectors despite global shocks: Bank of Baroda
The report attributed the trend to policy measures aimed at strengthening domestic manufacturing ecosystems.
“Indian economy has seen policy initiative targeted at building resilient supply chains and reducing import dependency,” it said, citing programmes such as Make in India, India Semiconductor Mission 2.0, expansion of the Electronics Components Manufacturing Scheme, development of Rare Earth Corridors and establishment of Chemical Parks.
Bank of Baroda said the decline in import dependence across key manufacturing sectors could help cushion the economy from external commodity shocks.
“India is slowly moving towards calibrated reduction in import dependence,” the report said, adding that “this policy of slowly reducing import dependence of India Inc, will be sanguine against any abrupt global supply shock on domestic output.”
The findings come at a time when rising commodity prices have emerged as a key concern following the West Asia conflict.
The report noted that international crude oil prices have risen 31.1 per cent since the start of the crisis on February 27, while several industrial metals have also recorded gains, raising concerns about input costs for import-intensive industries.
Despite these pressures, the report said the risks are not widespread across corporate India.
“Import intensity of India Inc is not broad based and is concentrated in certain sectors,” it said, adding that “the risk will not be broad-based and can be regulated with sector-level policies.”
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The report also observed that consumer-oriented sectors remain relatively insulated from global supply disruptions, with lower import intensity seen in domestic appliances, healthcare, FMCG and agriculture.
According to Bank of Baroda, sectors such as industrial gases and fuels, non-ferrous metals, crude oil and gas transmission continue to remain highly import-dependent and will require close monitoring amid volatility in global commodity markets.