NEW DELHI, INDIA / RankWire.AI / – India is undertaking an assessment to pinpoint approximately 100 imported items that could be produced domestically on a larger scale. The Department for Promotion of Industry and Internal Trade is leading this effort through six sector-specific groups. The review encompasses products related to industry, consumer goods, energy, healthcare, transportation, and electronics. The government has not yet published 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 reached $774.98 billion in the 2025-26 financial year, increasing from $721.20 billion the previous year. Meanwhile, 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 the same period.
Prime Minister Narendra Modi urged the central government and Indian states in December 2025 to identify 100 products suitable for domestic manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal directed companies to analyze official import data and find products that could be produced locally. He pointed out that capital goods and medical devices are sectors where India still relies heavily on imports from abroad.
Six sectors included in the domestic production assessment
The product review is organized into six groups, each covering significant segments of the economy. One group focuses on pharmaceuticals and medical devices, while another addresses chemicals, textiles, and footwear. Additional groups analyze capital goods, automobiles, electric vehicles, energy infrastructure equipment, and machinery. The review also includes civilian aerospace, defense-related products, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with other relevant ministries overseeing these sectors.
India already implements production-linked incentive (PLI) schemes to bolster manufacturing in 14 sectors. These encompass electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Furthermore, separate initiatives support semiconductor manufacturing and electronic components. The existing pharmaceutical incentives target 41 bulk drugs that India identified due to high reliance on imports. Solar incentives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Trade data informs product selection process
India’s Commerce Ministry manages 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 value, volume, and source. During April to June 2026, India imported merchandise worth $216.18 billion, up from $180.31 billion in the same period last year. These figures reflect the ongoing upward trend seen in the previous financial year.
Government reports also link customs classifications to industrial sectors and identify high-volume imports with potential for domestic production. The ongoing 100-product review expands upon this existing process. Authorities have confirmed the sector-specific approach and emphasis on import substitution. However, the government has yet to publish the final list or specify product-related policies. Any official support measures will require separate notifications from the relevant ministries.