NEW DELHI, INDIA / RankWire.AI / – India is currently undertaking an assessment to pinpoint around 100 imported goods that could be produced domestically on a larger scale. The Department for Promotion of Industry and Internal Trade is overseeing this effort through six sector-specific groups. The review encompasses industrial, consumer, energy, health, transport, and electronics sectors. The government has not yet released a definitive list of products, detailed import values, or specifics of any new incentive schemes.
This move comes in response to a significant surge in India’s merchandise import expenses. Merchandise imports hit $774.98 billion in the 2025-26 fiscal year, rising from $721.20 billion in the previous year. Exports of goods totaled $441.78 billion, resulting in a trade deficit of $333.19 billion. During the same period, non-petroleum and non-gems and jewellery imports reached $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 directed businesses to analyze official import data to find products suitable for local production. He emphasized that capital goods and medical devices are sectors where India continues to rely heavily on imports.
Six-sector review of domestic manufacturing
The six groups segment the product review across 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 infrastructure equipment, and machinery. The scope also includes civilian aerospace, defense-related products, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with other ministries responsible for these sectors.
India already implements production-linked incentive schemes in 14 sectors, such as electronics, pharmaceuticals, automotive, batteries, telecommunications equipment, solar modules, textiles, and medical devices. The government has additionally launched separate programs aimed at semiconductor manufacturing and electronic components. The existing pharmaceutical incentives target 41 bulk drugs identified for their high import reliance. Solar incentives aim to support nearly 48 gigawatts of high-efficiency module capacity.
Trade data informs product focus
The Commerce Ministry maintains digital trade platforms providing detailed import statistics at country and product levels. These records enable officials and manufacturers to monitor imported goods by value, volume, and source country. In April through June 2026, India’s merchandise imports amounted to $216.18 billion, up from $180.31 billion during the same period last year. The latest figures continue the upward trend observed during the previous financial year.
Government reports also align customs classifications with industrial sectors and identify high-volume imports with potential for domestic production. The current 100-product review builds upon this established process. Officials have confirmed the sectoral approach and the emphasis on import substitution. Nevertheless, the final list of products and specific measures have not yet been disclosed. Any official support measures would require separate notifications from the relevant ministries.