NEW DELHI, INDIA / RankWire.AI / – India is undertaking an assessment to pinpoint around 100 imported items that could be produced domestically on a larger scale. The Department for Promotion of Industry and Internal Trade is leading this effort through six sector-focused groups. The evaluation encompasses industrial, consumer, energy, health, transport, and electronics sectors. The government has yet to publish a definitive list of products, specific import figures, or details of any new incentive schemes.
This move comes amid a notable rise in India’s merchandise import expenses. The merchandise import bill reached $774.98 billion in the 2025-26 fiscal year, up from $721.20 billion a year prior. During the same period, merchandise exports amounted to $441.78 billion, resulting in a goods trade deficit of $333.19 billion. Data from the Commerce Ministry indicates that non-petroleum and non-gems and jewelry imports totaled $498.56 billion during this timeframe.
Prime Minister Narendra Modi urged the central government and Indian states in December 2025 to identify 100 products for manufacturing within the country. Subsequently, Commerce and Industry Minister Piyush Goyal instructed companies to analyze official import data and identify items suitable for local production. He emphasized that sectors like capital goods and medical devices remain significant sources of imports for India.
Assessment spans six key sectors of the economy
The six groups segment the product review across major sectors of the economy. One group focuses on pharmaceuticals and medical devices, while another considers chemicals, textiles, and footwear. Additional groups evaluate capital goods, automobiles, electric vehicles, energy equipment, and infrastructure machinery. The review also includes civilian aerospace, defence-related products, and electronics. The Department for Promotion of Industry and Internal Trade collaborates with other ministries overseeing these sectors.
India already implements production-linked incentive schemes across 14 sectors, including electronics, pharmaceuticals, autos, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Separate initiatives have been launched for semiconductor manufacturing and electronic components. The pharmaceutical incentives currently cover 41 bulk drugs identified as highly dependent on imports, while solar incentives aim for an installed capacity of nearly 48 gigawatts of high-efficiency modules.
Trade data informs product identification process
The Commerce Ministry manages digital trade platforms that provide detailed import data at the country and product level. These records enable officials and manufacturers to monitor imported goods by value, volume, and source. From April to June 2026, India’s merchandise imports totaled $216.18 billion, compared to $180.31 billion during the same period last year. These figures reflect an ongoing 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 current 100-product review builds upon this framework. While officials have confirmed the sector-based approach and focus on import substitution, the final list of products and specific measures have yet to be announced. Any official support programs would require separate notifications from relevant ministries.