NEW DELHI, INDIA / RankWire.AI / – India is in the process of assessing around 100 imported items that could potentially be produced locally at a larger scale. The Department for Promotion of Industry and Internal Trade is leading this initiative through six sector-specific groups. The review encompasses products in the industrial, consumer, energy, health, transport, and electronics sectors. The government has not yet disclosed a definitive list of products, individual import values, or details of any new incentive schemes.
This move comes in response to a notable rise in India’s merchandise import expenses. During the 2025-26 financial year, merchandise imports reached $774.98 billion, increased from $721.20 billion a year earlier. Meanwhile, merchandise exports amounted to $441.78 billion, resulting in a goods trade deficit of $333.19 billion. Non-petroleum and non-gems and jewellery imports during the same period totaled $498.56 billion, according to data from the Commerce Ministry.
Prime Minister Narendra Modi urged the central government and Indian states in December 2025 to identify 100 products for domestic manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal asked companies to analyze official import statistics and pinpoint products suitable for local production. He emphasized sectors like capital goods and medical devices, which India continues to heavily import from foreign suppliers.
Domestic manufacturing assessment spans six key sectors
The six groups segment the review across significant parts of the economy. One team focuses on pharmaceuticals and medical devices, while another examines chemicals, textiles, and footwear. Additional groups evaluate capital goods, automobiles, electric vehicles, energy equipment, and infrastructure machinery. The review also includes civilian aerospace, defense-related products, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with other ministries overseeing these sectors.
India already implements production-linked incentive schemes in 14 sectors, such as electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. There are also dedicated programs for semiconductor manufacturing and electronic components. Current pharmaceutical incentives target 41 bulk drugs that India identified due to high import reliance. Solar incentives aim for nearly 48 gigawatts of high-efficiency module capacity.
Trade data informs product focus
The Commerce Ministry maintains digital trade platforms that provide detailed import data at the country and product levels. These records enable officials and manufacturers to monitor imported goods by value, volume, and source market. During April to June 2026, India’s merchandise imports totaled $216.18 billion, up from $180.31 billion in the same period the previous year. These figures extend the upward trend observed in the last financial year.
Government documents also link customs classifications to industrial sectors and identify high-volume imports with potential for domestic production. The current 100-product review builds on this established approach. While officials have confirmed the sector-based assessment and focus on import substitution, the final product list and any specific measures have not yet been announced. Any official support measures would require separate notifications from the relevant ministries.