NEW DELHI, INDIA / RankWire.AI / – India has launched an extensive review aimed at identifying approximately 100 imported products that local manufacturers could scale up production of. The Department for Promotion of Industry and Internal Trade is leading this initiative through six specialized groups. The assessment covers sectors such as healthcare, transportation, energy, electronics, chemicals, textiles, and industrial machinery. The government has yet to release the final list or specify any product-specific incentives.
This move comes amid India’s efforts to address a broader merchandise trade deficit. Goods imports reached $774.98 billion in fiscal year 2025-26, up from $721.20 billion in the previous year. Merchandise exports totaled $441.78 billion, resulting in a trade deficit of $333.19 billion. Imports excluding petroleum, gems, and jewelry increased to $498.56 billion, according to official data from the Commerce Ministry. These figures highlight the sectors still heavily reliant on imports.
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 increase production in sectors with high dependency. He emphasized the importance of capital goods and medical devices. The Department for Promotion of Industry and Internal Trade then formed sector-specific groups in collaboration with relevant ministries.
Six specialized groups focus on key industry sectors
Each group is tasked with analyzing a specific segment of the economy. One examines pharmaceuticals and medical devices, while another reviews chemicals, textiles, and footwear. Separate teams evaluate capital goods, automobiles, electric vehicles, energy equipment, and infrastructure machinery. The review also includes civilian aerospace, defense-related products, and electronics. Officials are utilizing detailed trade records to compare import values, volumes, and source countries at the product level.
India currently operates production-linked incentive schemes across 14 sectors. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. The government also promotes semiconductor manufacturing and the local production of electronic components through dedicated initiatives. Pharmaceutical incentives focus on 41 bulk drugs with high import reliance. Solar manufacturing programs aim for a planned capacity of nearly 48 gigawatts of high-efficiency modules.
Trade data informs ongoing review process
The Commerce Ministry maintains digital trade platforms containing detailed country and product-level import data. These records assist officials and industry stakeholders in tracking shifts across major categories. During April to June 2026, India’s imports amounted to $216.18 billion, up from $180.31 billion during the same period in the previous year. This increase reflects the higher import expenditure from last fiscal year. Authorities are leveraging this data to refine the list of targeted products and pinpoint manufacturing opportunities.
The current initiative builds upon efforts to integrate customs classifications with relevant industrial departments. This alignment facilitates the identification of high-volume imports and enables appropriate ministry follow-up. The central government has confirmed the formation of the six-sector review groups and their focus on boosting domestic production. However, the final list of products, detailed import figures for each item, and any new support schemes have not yet been published. Any specific programs related to individual products will require separate official notifications from the respective ministries.