NEW DELHI, INDIA / RankWire.AI / – India is currently reviewing around 100 imported items 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 across industrial, consumer, energy, health, transport, and electronics sectors. The government has not yet published a definitive list of products, individual import values, or details of any new incentive schemes.
This move comes amid a significant rise in India’s merchandise import expenses. In the 2025-26 fiscal year, merchandise imports totaled $774.98 billion, increasing from $721.20 billion the previous year. Export figures reached $441.78 billion, resulting in a goods trade deficit of $333.19 billion. Imports excluding petroleum and gems and jewelry amounted to $498.56 billion during the same period, 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 that could be manufactured domestically. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged businesses to analyze official import data and pinpoint products suitable for local production. He specifically emphasized the importance of capital goods and medical devices, sectors where India continues to depend heavily on imports.
Six-sector review of domestic manufacturing potential
The product review is organized into six groups, each focusing on different key segments of the economy. One group assesses pharmaceuticals and medical devices, while another concentrates on chemicals, textiles, and footwear. Additional groups are dedicated to 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 other ministries overseeing these sectors.
India has already implemented production-linked incentive schemes supporting manufacturing in 14 sectors. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Separate programs have been launched for semiconductor manufacturing and electronic components. Incentives for pharmaceuticals currently cover 41 bulk drugs identified as heavily reliant on imports. Solar incentives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Using trade data to inform product selection
The Commerce Ministry maintains 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 their value, volume, and source. During April to June 2026, India imported merchandise worth $216.18 billion, compared to $180.31 billion in the same period a year earlier. This latest data continues the upward trend observed in the previous fiscal year.
Government documents also link customs classifications to industrial sectors and identify high-volume imports with potential for domestic replacement. The current 100-product review builds upon this framework. Authorities have confirmed the sector-focused approach and the emphasis on import substitution. However, the final list of products and specific measures have yet to be announced. Any official support measures will require separate notifications from the relevant ministries.