NEW DELHI, INDIA / RankWire.AI / – India is underway with an assessment to pinpoint approximately 100 imported items that could be produced domestically at a larger scale. The Department for Promotion of Industry and Internal Trade is overseeing this process through six sector-specific groups. The scope includes products from the industrial, consumer, energy, health, transport, and electronics sectors. The government has yet to publish an official list of products, specific import figures, or details regarding any new incentive schemes.
This effort is in response to a notable rise in India’s merchandise import expenses. In the 2025-26 financial year, merchandise imports hit $774.98 billion, up from $721.20 billion in the previous year. Meanwhile, merchandise exports amounted to $441.78 billion, resulting in a goods trade deficit of $333.19 billion. Non-petroleum and non-gems and jewellery imports alone reached $498.56 billion during this period, according to data from the Commerce Ministry.
Prime Minister Narendra Modi urged both the central government and Indian states in December 2025 to identify 100 products for domestic manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged businesses to analyze official import data and find items suitable for local production. He emphasized that sectors such as capital goods and medical devices continue to rely heavily on imports from international suppliers.
Six-sector assessment of domestic manufacturing potential
The product review is divided among six groups, each focusing on key sectors of the economy. One group is responsible for pharmaceuticals and medical devices, while another covers chemicals, textiles, and footwear. Additional groups analyze capital goods, automobiles, electric vehicles, energy machinery, and infrastructure equipment. The review process 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 already implements production-linked incentive programs to bolster manufacturing in 14 industries, including electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Separate schemes have been introduced for semiconductor manufacturing and electronic components. Incentives for pharmaceuticals currently target 41 bulk drugs identified as highly dependent on imports. Solar incentives support nearly 48 gigawatts of planned high-efficiency module capacity.
Trade data informs product focus
The Commerce Ministry maintains digital trade platforms that offer 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 markets. During April through June 2026, India’s merchandise imports totaled $216.18 billion, compared to $180.31 billion in the same period the previous year. These latest figures continue the upward trend seen during the last financial year.
Government documents also link customs classifications to industrial sectors and highlight high-volume imports with potential for local production. The current 100-product initiative expands on this established approach. While officials have confirmed the sector-based assessment and emphasis on import substitution, the government has not yet released the final list or specific measures for individual products. Any official support measures will require separate notifications from the relevant ministries.