NEW DELHI, INDIA / RankWire.AI / – India is currently reviewing around 100 imported products to determine which 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 categories. The government has yet to publish a definitive list of products, import values, or details regarding any new incentive schemes.
This move comes in response to a significant surge in India’s merchandise import expenses. Merchandise imports totaled $774.98 billion in the 2025-26 financial year, rising from $721.20 billion in the previous year. Export figures reached $441.78 billion, resulting in a goods trade deficit of $333.19 billion. Data from the Commerce Ministry shows that non-petroleum and non-gems and jewelry 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 encouraged companies to analyze official import data and pinpoint items that could be produced locally. He emphasized that sectors such as capital goods and medical devices remain heavily reliant on imports.
Six-sector focus of the domestic manufacturing review
The product review is organized into six groups, each representing key areas of the economy. One group assesses pharmaceuticals and medical devices, 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 through production-linked incentive schemes in 14 sectors, including electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Separate programs target semiconductor manufacturing and electronic components. Incentives for pharmaceuticals currently cover 41 bulk drugs identified as highly dependent on imports. Solar initiatives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Utilizing trade data to identify key products
The Commerce Ministry manages digital trade platforms that offer detailed import data at the country and product level. These records enable officials and manufacturers to monitor imports by value, volume, and source. During April to June 2026, India’s merchandise imports reached $216.18 billion, compared to $180.31 billion in the same period a year earlier. This continues the upward trend observed in the previous financial year.
Government documents also connect customs classifications to industrial sectors and highlight high-volume imports that could potentially be produced domestically. The ongoing 100-product review builds on this established process. While officials have confirmed the sector-based approach and emphasis on import substitution, the final list of products and specific measures have not yet been disclosed. Any formal support schemes would require separate official notifications from the relevant ministries.