NEW DELHI, INDIA / RankWire.AI / – India is currently assessing around 100 imported items with the aim of boosting domestic production. 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 categories. The government has not yet released an official list of products, individual import values, or details regarding any new incentive schemes.
This move comes in response to a significant surge in India’s merchandise import expenses. In the 2025-26 fiscal year, merchandise imports soared to $774.98 billion from $721.20 billion the previous year. During the same period, merchandise exports totaled $441.78 billion, resulting in a goods trade deficit of $333.19 billion. According to data from the Commerce Ministry, non-petroleum and non-gems and jewellery imports amounted to $498.56 billion during this timeframe.
Prime Minister Narendra Modi urged the central government and state authorities in December 2025 to identify 100 products for which domestic manufacturing could be promoted. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged companies to analyze official import data and pinpoint products suitable for local production. He emphasized sectors like capital goods and medical devices, where India continues to rely heavily on imports from overseas suppliers.
Six-sector approach to domestic manufacturing assessment
The product review process is divided among six groups, each covering key parts of the economy. One group focuses on pharmaceuticals and medical devices, while another addresses chemicals, textiles, and footwear. Additional groups evaluate capital goods, automobiles, electric vehicles, energy equipment, and infrastructure machinery. The scope also includes civilian aerospace, defense-related products, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with relevant ministries overseeing these sectors.
India has already implemented production-linked incentive schemes across 14 sectors to promote manufacturing. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar panels, textiles, and medical devices. Separate programs have been launched for semiconductor manufacturing and electronic components. Incentives for pharmaceuticals target 41 bulk drugs identified as highly dependent on imports, while solar incentives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Using trade data to select target products
The Commerce Ministry maintains digital trade platforms that provide detailed import information at the country and product level. These records help officials and manufacturers monitor imported goods by value, volume, and source. During April to June 2026, India’s merchandise imports reached $216.18 billion, up from $180.31 billion during the same period in the previous year. These figures continue the upward trend observed in the last fiscal year.
Official documents also link customs classifications to industrial sectors and identify high-volume imports with potential for domestic manufacturing. The current 100-product review builds upon this established process. Authorities have confirmed the sector-specific focus and the goal of import substitution. However, the final list of products and specific measures remain unannounced. Any official support measures will require separate notifications from the relevant ministries.