NEW DELHI, INDIA / RankWire.AI / – India has initiated an extensive review to pinpoint approximately 100 imported products that local manufacturers could scale up production for. The Department for Promotion of Industry and Internal Trade is leading this effort through six specialized groups. The assessment covers sectors including health care, transportation, energy, electronics, chemicals, textiles, and industrial equipment. The government has yet to release the definitive list or announce specific incentives for individual products.
This initiative occurs amid broader efforts to address India’s substantial merchandise trade deficit. Goods imports hit $774.98 billion in fiscal 2025-26, rising from $721.20 billion in the previous year. Merchandise exports reached $441.78 billion, leaving a trade shortfall of $333.19 billion. Excluding petroleum, gems, and jewelry, imports increased to $498.56 billion, according to official data from the Commerce Ministry. These figures highlight the sectors that remain heavily reliant on foreign supplies.
Prime Minister Narendra Modi instructed the central government and state authorities in December 2025 to identify 100 products suitable for local manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged companies to analyze official import records and expand domestic production in sectors with high dependency. He emphasized the importance of capital goods and medical devices. The Department for Promotion of Industry and Internal Trade then organized sector-specific groups in collaboration with relevant ministries.
Six specialized teams analyze key industrial sectors
Each team focuses on a specific segment of the economy. One reviews pharmaceuticals and medical devices, while another assesses chemicals, textiles, and footwear. Separate groups examine capital goods, automobiles, electric vehicles, energy infrastructure equipment, and manufacturing machinery. The review also includes civilian aerospace, defense-related products, and electronics. Officials utilize trade data at the product level to compare import values, volumes, and sourcing countries.
India already runs production-linked incentive schemes across 14 industries. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. The government additionally supports semiconductor manufacturing and the domestic production of electronic components through dedicated initiatives. Pharmaceutical incentives target 41 bulk drugs with high import reliance, while solar manufacturing programs aim for nearly 48 gigawatts of high-efficiency module capacity.
Trade data informs the review process
The Commerce Ministry maintains digital trade platforms that provide detailed country and product-level import information. Officials and industry stakeholders utilize these records to monitor shifts across major categories. During April to June 2026, India imported goods worth $216.18 billion, compared to $180.31 billion during the same period in the previous year. The rise reflects the increased import costs from the prior fiscal year. The authorities are leveraging this data to refine the list of targeted products and identify manufacturing gaps.
This ongoing review enhances efforts to align customs classifications with the responsibilities of relevant industrial departments. This linkage helps officials identify high-volume imports and assign follow-up actions to the appropriate ministries. The government has confirmed the formation of the six-sector groups and their focus on boosting domestic manufacturing. However, the final list of products, detailed import values, and any new support schemes have not yet been publicly disclosed. Any product-specific initiatives would require separate official notifications from the relevant ministries.