NEW DELHI, INDIA / RankWire.AI / – India is presently reviewing around 100 imported products to determine which could be produced domestically on a larger scale. The Department for Promotion of Industry and Internal Trade is leading this initiative through six sector-specific groups. The assessment includes industrial, consumer, energy, health, transport, and electronics sectors. The government has yet to disclose a definitive 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 amounted to $774.98 billion, increasing from $721.20 billion the previous year. During the same period, merchandise exports reached $441.78 billion, resulting in a goods trade deficit of $333.19 billion. Data from the Commerce Ministry indicates that non-petroleum and non-gems and jewelry imports totaled $498.56 billion during this timeframe.
Prime Minister Narendra Modi urged the central government and Indian states in December 2025 to pinpoint 100 products for domestic manufacturing. Later, Commerce and Industry Minister Piyush Goyal instructed companies to analyze official import statistics and identify items suitable for local production. He emphasized that sectors such as capital goods and medical devices continue to rely heavily on imports from overseas sources.
Six-sector focus of the domestic manufacturing review
The product review is segmented into six groups, each concentrating on key parts of the economy. One group assesses pharmaceuticals and medical devices, while another examines 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 relevant ministries overseeing these sectors.
India currently implements production-linked incentive schemes across 14 sectors to bolster manufacturing. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Separate programs have been introduced for semiconductor manufacturing and electronic component production. Incentives for pharmaceuticals cover 41 bulk drugs, targeted due to their high import reliance. Solar incentives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Using trade data to steer product focus
The Commerce Ministry manages digital trade platforms that offer detailed import data at the country and product levels. These resources enable officials and manufacturers to monitor imported goods by value, volume, and source. During April through June 2026, India imported merchandise worth $216.18 billion, up from $180.31 billion in the same period the previous year. This increase continues the upward trend seen in the prior financial year.
Official documents also link customs classifications to industrial sectors and identify high-volume imports with the potential for domestic production. The ongoing 100-product review builds upon this framework. Authorities have confirmed the sector-oriented approach and focus on import substitution, though the final list or specific policy measures have not yet been disclosed. Any formal support measures will require separate official notifications from relevant ministries.