Forexintensity: Concept and its Estimates for Various Sectors in India

This paper explores the relationship between imported raw materials and exports by considering the relevant critical parameters like'direct import intensities’ ‘direct and induced import intensities’ ‘sectoral composition of export’, ‘Net Foreign Exchange Inflow Rate(NFEIR)’, ‘export intensities’,and finally the ‘Forex Intensity’. We find that import intensity of exports has increased substantially over the years. ‘Readymade Garments’, ‘Carpet Weaving’, ‘Leather and Leather Products’, ‘Bouxite and Iron Ore’ have emerged as high forex intensive sectors in reform era.