NEW DELHI, INDIA / RankWire.AI / – India has initiated a comprehensive review to pinpoint approximately 100 imported products that domestic manufacturers could scale up production of. The Department for Promotion of Industry and Internal Trade is overseeing this effort through six specialized teams. The review covers sectors including health care, transportation, energy, electronics, chemicals, textiles, and industrial machinery. The government has yet to release the final list or announce specific incentives for individual products.
This initiative comes amidst India’s broader efforts to address its significant merchandise trade deficit. In fiscal year 2025-26, goods imports climbed to $774.98 billion, up from $721.20 billion the previous year. Meanwhile, merchandise exports reached $441.78 billion, resulting in a trade shortfall of $333.19 billion. Excluding petroleum, gems, and jewelry, imports increased to $498.56 billion, based on data from the official Commerce Ministry. These figures highlight sectors that remain heavily reliant on foreign supplies.
Prime Minister Narendra Modi directed 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 data and expand production in sectors with high import dependence. He emphasized the importance of capital goods and medical devices. The Department for Promotion of Industry and Internal Trade then convened sector-specific groups involving relevant ministries.
Six teams analyze key industrial sectors
Each group focuses on a specific part of the economy. One team assesses pharmaceuticals and medical devices, while another reviews chemicals, textiles, and footwear. Separate units examine capital goods, automobiles, electric vehicles, energy infrastructure equipment, and machinery. The review also includes civilian aerospace, defense-related products, and electronics. Officials are utilizing detailed trade records at the product level to compare import values, quantities, and source countries.
India currently runs production-linked incentive schemes across 14 sectors, including electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar panels, textiles, and medical devices. The government additionally promotes semiconductor manufacturing and the domestic production of electronic components via dedicated schemes. Incentives for pharmaceuticals target 41 bulk drugs identified for their heavy import reliance. Solar manufacturing programs aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Trade data informs the review process
The Commerce Ministry maintains digital trade platforms containing detailed country and product-level import data. Officials and businesses leverage these records to monitor shifts in major categories. From 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 expenditure from the prior fiscal year. Authorities are analyzing this data to refine the product list and identify manufacturing opportunities.
This ongoing review extends government efforts to connect customs classifications with relevant industrial departments. Such alignment helps officials pinpoint high-volume imports and assign follow-up actions to the appropriate agencies. The government has confirmed the six-sector review and its focus on boosting domestic manufacturing. However, it has not yet announced the final list of products, provided detailed import figures for each item, or introduced any new support schemes. Any product-specific initiatives would require separate official notifications from the relevant ministry.