NEW DELHI, INDIA / RankWire.AI / – India has launched a comprehensive review to pinpoint approximately 100 imported products that local manufacturers could scale up domestically. The Department for Promotion of Industry and Internal Trade is spearheading this effort through six specialized groups. The assessment covers sectors such as health care, transportation, energy, electronics, chemicals, textiles, and industrial machinery. The government has yet to release the finalized list or announce specific incentives for individual products.
This initiative comes amidst India’s broader efforts to address its significant merchandise trade deficit. Goods imports hit $774.98 billion in fiscal year 2025-26, up from $721.20 billion the previous year. Exports of merchandise totaled $441.78 billion, resulting in a trade shortfall of $333.19 billion. Excluding petroleum, gems, and jewelry, import values increased to $498.56 billion, according to official data from the Commerce Ministry. These figures highlight the 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 urged companies to analyze official import data and expand manufacturing in sectors with high dependence. He pointed out capital goods and medical devices as key areas for development. The Department for Promotion of Industry and Internal Trade then formed sector-specific teams with relevant ministries.
Six sector groups assess key industries
Each group focuses on a specific part of the economy. One team reviews pharmaceuticals and medical devices, while another evaluates chemicals, textiles, and footwear. Separate groups examine capital goods, automobiles, electric vehicles, energy equipment, and infrastructure machinery. The review also includes civilian aerospace, defence-related products, and electronics. Officials are comparing import data at the product level, analyzing import values, volumes, and sourcing countries.
India already implements production-linked incentive schemes across 14 sectors. These initiatives support electronics, pharmaceuticals, automotive manufacturing, batteries, telecom equipment, solar modules, textiles, and medical devices. The government also promotes semiconductor production and local electronic component manufacturing through dedicated programs. Pharmaceutical incentives target 41 bulk drugs with high import reliance, while solar manufacturing programs aim for 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 information. Officials and businesses utilize these records to monitor shifts across major categories. From April to June 2026, India imported $216.18 billion worth of goods, compared to $180.31 billion during the same period in the previous year. The rise reflects increased import costs from the prior fiscal year. Authorities are analyzing this data to refine their product list and identify areas for indigenous manufacturing expansion.
This current review builds on efforts to connect customs classifications with relevant industrial departments, facilitating the identification of high-volume imports and enabling targeted follow-up. The central government has confirmed the formation of the six-sector review teams and their focus on boosting domestic production. However, the final list of products, specific import values, and any new support measures have not yet been published. Any product-specific programs would require separate official notifications from the concerned ministry.