NEW DELHI, INDIA / RankWire.AI / – India is conducting a review to identify about 100 imported products that could be manufactured domestically at greater scale. The Department for Promotion of Industry and Internal Trade is coordinating the exercise through six sector groups. The review covers industrial, consumer, energy, health, transport and electronics products. The government has not published a final product list, individual import values or details of any new incentive package.
The initiative follows a sharp increase in India’s merchandise import bill. Merchandise imports reached $774.98 billion in the 2025-26 financial year, up from $721.20 billion a year earlier. Merchandise exports totaled $441.78 billion, leaving a goods trade deficit of $333.19 billion. Non-petroleum and non-gems and jewellery imports reached $498.56 billion during the same period, according to Commerce Ministry data.
Prime Minister Narendra Modi called on the central government and Indian states in December 2025 to identify 100 products for domestic manufacturing. Commerce and Industry Minister Piyush Goyal later asked businesses to examine official import data and identify products suitable for local production. He highlighted capital goods and medical devices as sectors where India continues to buy significant quantities from overseas suppliers.
Domestic production review covers six sectors
The six groups divide the product review across major parts of the economy. One group covers pharmaceuticals and medical devices, while another handles chemicals, textiles and footwear. Other groups examine capital goods, automobiles, electric vehicles, energy equipment and infrastructure machinery. Civilian aerospace, defence-related products and electronics also fall within the review. The Department for Promotion of Industry and Internal Trade works with other ministries responsible for those sectors.
India already uses production-linked incentive programs to support manufacturing in 14 sectors. These include electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles and medical devices. The government has also introduced separate programs for semiconductor production and electronic component manufacturing. Existing pharmaceutical incentives cover 41 bulk drugs that India identified because of high import dependence. Solar incentives cover planned high-efficiency module capacity of nearly 48 gigawatts.
Trade data guides product selection
The Commerce Ministry operates digital trade platforms that provide country and product-level import data. Those records allow officials and manufacturers to track imported goods by value, volume and source market. India imported $216.18 billion in merchandise during April through June 2026, compared with $180.31 billion during the same period a year earlier. The latest figures extend the rise recorded during the previous financial year.
Government documents also map customs classifications to industrial departments and identify high-volume imports with potential for domestic production. The current 100-product exercise builds on that established process. Officials have confirmed the sector-based review and the focus on import substitution. However, the government has not released the final selection or announced product-specific measures. Any approved support would require separate official notifications from the responsible ministries.