The correct option is 2 and 3 only.
Explanation
India’s import basket has undergone significant structural changes since independence. While the early decades (1950s-60s) were characterized by heavy dependence on food imports, the post-Green Revolution and post-liberalization eras have seen a shift towards energy resources (petroleum) and capital goods to fuel industrialization.
Statement-wise Analysis:
- Statement 1 is Incorrect.
Petroleum and petroleum products constitute the largest share of India’s import bill. With growing urbanization, industrialization, and transportation needs, the demand for energy has surged. Consequently, the import of petroleum (crude and products) has generally increased, not declined, over the last few decades. It remains the single largest item in India's imports.
- Statement 2 is Correct.
Capital goods include machinery, transport equipment, and technology required for industrial production. As India’s economy has expanded, particularly in the manufacturing and infrastructure sectors, the demand for advanced machinery and technology has grown. While there are year-on-year fluctuations due to economic cycles, the long-term trend over the relevant decades reflects a significant increase in the import of capital goods to support domestic development.
- Statement 3 is Correct.
In the 1950s and 1960s, India faced acute food shortages and was heavily dependent on food grain imports (e.g., PL-480 wheat from the USA). However, following the Green Revolution in the late 1960s and 1970s, India achieved self-sufficiency in food grains. Currently, India is largely self-reliant in cereals and is often a net exporter of rice and wheat, making the import of food grains negligible compared to the crisis levels of the mid-20th century.
Key Takeaway:
The structural transformation of India's economy is reflected in its trade: a shift from food dependence (1950s) to energy dependence (Petroleum) and technology absorption (Capital Goods) in the modern era.