NEW DELHI, INDIA / RankWire.AI / – India is undertaking an assessment to pinpoint around 100 imported products that could be produced domestically on a larger scale. The Department for Promotion of Industry and Internal Trade is managing this initiative through six sector-focused groups. The review encompasses industrial, consumer, energy, health, transport, and electronics categories. The government has not yet disclosed a finalized list of products, specific import values, or details regarding any new incentive schemes.
This move comes in response to a notable rise in India’s merchandise import expenses. Merchandise imports amounted to $774.98 billion in the 2025-26 fiscal year, increasing from $721.20 billion the previous year. Exports of goods reached $441.78 billion, resulting in a goods trade deficit of $333.19 billion. During the same period, non-petroleum and non-gems and jewellery imports totaled $498.56 billion, according to data from the Commerce Ministry.
Prime Minister Narendra Modi urged both the central government and Indian states in December 2025 to identify 100 products suitable for domestic manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal directed businesses to analyze official import data and select products that could be produced locally. He emphasized that capital goods and medical devices are sectors where India continues to rely heavily on imports from abroad.
Six-sector focus of the domestic manufacturing review
The product review process is divided among six groups, each covering key areas of the economy. One group assesses pharmaceuticals and medical devices, while another examines chemicals, textiles, and footwear. Additional groups analyze capital goods, automobiles, electric vehicles, energy tools, and infrastructure machinery. The scope also includes civilian aerospace, defense-related items, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with other ministries responsible for these sectors.
India currently supports manufacturing through production-linked incentive schemes in 14 sectors, including electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Separate initiatives have been launched for semiconductor manufacturing and electronic components. Existing pharmaceutical incentives target 41 bulk drugs identified as highly dependent on imports. Solar incentives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Utilizing trade data to select products for domestic production
The Commerce Ministry manages digital trade platforms that supply 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. In April through June 2026, India’s merchandise imports totaled $216.18 billion, up from $180.31 billion during the same period in the previous year. The latest figures continue the upward trend seen in the prior financial year.
Government documentation also links customs classifications to industrial sectors and highlights high-volume imports with potential for local production. The ongoing 100-product review builds upon this foundational process. Authorities have confirmed the sector-specific approach and emphasis on import substitution, but the final list of products and any targeted measures remain unreleased. Any official support schemes will require separate notifications from the relevant ministries.