NEW DELHI, INDIA / RankWire.AI / – India is currently assessing around 100 imported goods that could potentially 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 review encompasses products in the industrial, consumer, energy, health, transport, and electronics categories. The government has not yet disclosed a definitive list of products, individual 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 climbed to $774.98 billion in the 2025-26 fiscal year, increasing from $721.20 billion in the previous year. Meanwhile, merchandise exports 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 the central government and Indian states in December 2025 to identify 100 products for local manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged businesses to analyze official import data and pinpoint products suitable for domestic production. He emphasized that sectors such as capital goods and medical devices continue to see significant overseas procurement.
Six-sector review of domestic manufacturing potential
The product review is organized into six groups, each focusing on key segments of the economy. One group concentrates 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 review also includes civilian aerospace, defense-related items, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with other ministries overseeing these sectors.
India has already implemented production-linked incentive (PLI) schemes supporting manufacturing in 14 sectors. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Moreover, separate programs are in place for semiconductor manufacturing and electronic component production. Incentives for pharmaceuticals 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 local production
The Commerce Ministry manages online trade platforms that provide detailed import data at the country and product levels. These data sets enable officials and manufacturers to monitor imports by value, volume, and source country. During April to June 2026, India’s merchandise imports amounted to $216.18 billion, up from $180.31 billion in the same period the previous year. These figures reflect the ongoing upward trend from the prior financial year.
Official documents also link customs classifications to industrial sectors and highlight high-volume imports with potential for domestic manufacturing. The current 100-product review builds upon this analytical foundation. Authorities have affirmed the sector-specific approach and focus on import substitution, but the final list of products and specific measures have yet to be announced. Any official support schemes will require formal notifications from relevant ministries.