NEW DELHI, INDIA / RankWire.AI / – India is undertaking an assessment to pinpoint around 100 imported products that could be scaled up for domestic production. The Department for Promotion of Industry and Internal Trade is leading this effort through six sector-specific groups. The review encompasses industrial, consumer, energy, health, transport, and electronics items. The government has not yet published a definitive list of products, individual import values, or details about any new incentive schemes.
This move follows a notable rise in India’s merchandise import expenses. In the 2025-26 fiscal year, merchandise imports hit $774.98 billion, increasing from $721.20 billion in the previous year. Merchandise exports amounted to $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 reached $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 suitable for domestic manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal directed businesses 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 continues to rely heavily on imports.
Six-sector focus of the domestic production review
The six groups segment the product review according to main economic sectors. One group addresses pharmaceuticals and medical devices, while another covers chemicals, textiles, and footwear. Additional groups scrutinize capital goods, automobiles, electric vehicles, energy equipment, and infrastructure machinery. The review also includes civilian aerospace, defence-related items, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with other ministries overseeing these sectors.
India currently employs production-linked incentive schemes to boost manufacturing across 14 sectors. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Separate programs have been introduced for semiconductor manufacturing and electronic components. Incentives for pharmaceuticals target 41 bulk drugs identified as heavily reliant on imports, while solar initiatives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Trade data informs product focus
The Commerce Ministry maintains digital trade platforms that supply import data at country and product levels. These records enable officials and manufacturers to monitor imported goods by their value, volume, and source markets. During April to June 2026, India imported merchandise worth $216.18 billion, compared to $180.31 billion in the same period the previous year. These figures indicate an ongoing increase from the prior fiscal year.
Government documents also link customs classifications to industrial sectors and identify high-volume imports with potential for domestic production. The current 100-product review builds on this established process. Authorities have confirmed the sectoral scope and the emphasis on import substitution. However, the final product list and any specific measures have not yet been publicly released. Any formal support schemes would require separate official notifications from the relevant ministries.