NEW DELHI, INDIA / RankWire.AI / – India is currently undertaking a review to pinpoint nearly 100 imported products 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 industrial, consumer, energy, health, transport, and electronics sectors. The government has not yet disclosed a definitive list of products, individual import values, or details of any new incentive programs.
This move comes in response to a notable rise in India’s merchandise import expenses. Merchandise imports hit $774.98 billion in the 2025-26 fiscal year, an increase from $721.20 billion the previous year. Exports of goods totaled $441.78 billion, resulting in a trade deficit of $333.19 billion. Imports excluding petroleum and gems and jewelry reached $498.56 billion during the same period, according to data from the Commerce Ministry.
Prime Minister Narendra Modi urged the central government and all Indian states in December 2025 to identify 100 products suitable for domestic manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged companies to analyze official import data and select goods that could be produced locally. He emphasized sectors such as capital goods and medical devices, where India still relies heavily on imports.
Six-sector focus for domestic manufacturing assessment
The product review is organized into six groups, each covering a key segment of the economy. One group assesses pharmaceuticals and medical devices, while another focuses on chemicals, textiles, and footwear. Additional groups evaluate 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 supports manufacturing growth through production-linked incentive schemes across 14 sectors. These include electronics, pharmaceuticals, automobiles, batteries, telecom equipment, solar modules, textiles, and medical devices. Separate schemes have been launched for semiconductor manufacturing and electronic parts. Incentives for pharmaceuticals target 41 bulk drugs that India imports heavily, while solar energy incentives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Utilizing trade data to determine product priorities
The Commerce Ministry maintains digital trade platforms offering detailed import data at the country and product level. This information enables officials and manufacturers to monitor imports by value, volume, and source country. During April to June 2026, India’s merchandise imports amounted to $216.18 billion, up from $180.31 billion in the same period the previous year. These figures continue the upward trend seen in the last financial year.
Official documents also link customs classifications with industrial sectors and highlight high-volume imports that could be produced domestically. The ongoing 100-product review builds upon this framework. While authorities have confirmed the sector-based approach and the goal of import substitution, they have not yet disclosed the final list or announced specific measures for individual products. Any official support initiatives will require separate notifications from the relevant ministries.