UNIT ROOT ANALYSIS OF INDIA’S TOTAL IMPORTS AND PRINCIPAL COMMODITIES

Abstract

This study investigates the stationarity properties of India’s total imports and its principal imported commodities using unit root tests. Stationarity is a critical prerequisite for econometric modelling, as non-stationary series can lead to spurious regressions. By applying first differences, the study confirms that all variables are integrated of order one I (1). This finding provides a robust foundation for subsequent Vector Auto-Regression (VAR), Granger causality, and variance decomposition analyses, enabling meaningful exploration of short-run and long-run relationships among India’s imports.