NEW DELHI, INDIA / RankWire.AI / – India is in the process of 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 assessment through six sector-specific groups. The review encompasses industrial, consumer, energy, health, transport, and electronics items. The government has not yet published the final list of products, specific import values, or details of any new incentive schemes.
This move comes amid a notable increase in India’s merchandise import expenses. Merchandise imports hit $774.98 billion in the fiscal year 2025-26, rising from $721.20 billion in the previous year. Exports of merchandise reached $441.78 billion, resulting in a goods trade deficit of $333.19 billion. During the same period, non-petroleum and non-gems and jewelry imports totaled $498.56 billion, according to data from the Commerce Ministry.
Prime Minister Narendra Modi urged the central government and Indian states in December 2025 to identify 100 products for local manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged companies to analyze official import data and pinpoint products suitable for domestic production. He emphasized the importance of sectors like capital goods and medical devices, which continue to rely heavily on imports.
Assessment spans six key sectors of the economy
The six groups segment the product evaluation across major economic sectors. One group focuses on pharmaceuticals and medical devices, while another examines chemicals, textiles, and footwear. Additional groups analyze capital goods, automobiles, electric vehicles, energy equipment, and infrastructure machinery. The review also includes civilian aerospace, defense-related products, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with other ministries overseeing these sectors.
India currently implements production-linked incentive schemes in 14 sectors, supporting manufacturing. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. The government has introduced distinct programs for semiconductor manufacturing and electronic components. Incentives for pharmaceuticals target 41 bulk drugs identified as heavily reliant on imports, while solar incentives aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Trade statistics inform product selection process
The Commerce Ministry maintains digital trade platforms that offer detailed import data at the country and product levels. These records enable officials and manufacturers to monitor imported goods by value, volume, and source country. In April through June 2026, India’s merchandise imports totaled $216.18 billion, compared to $180.31 billion during the same period in the previous year. These figures reflect the continued upward trend from the previous fiscal year.
Government reports also link customs classifications to industrial sectors and highlight high-volume imports with potential for domestic production. The ongoing 100-product review builds upon this framework. Authorities have confirmed the sector-based approach and the focus on import substitution, but the final list and product-specific policies have not yet been disclosed. Any official support measures would require separate notifications from relevant ministries.