NEW DELHI, INDIA / RankWire.AI / – India has launched a comprehensive initiative to pinpoint approximately 100 imported products that local manufacturers could scale up production for. 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 publish the final list or announce specific incentives for individual products.
This move comes amid India’s ongoing efforts to address a significant merchandise trade deficit. In fiscal 2025-26, goods imports reached $774.98 billion, an increase from $721.20 billion in the previous year. Meanwhile, merchandise exports amounted to $441.78 billion, resulting in a trade shortfall of $333.19 billion. Data from the official Commerce Ministry indicates that imports excluding petroleum, gems, and jewelry climbed to $498.56 billion. These figures highlight the sectors that remain heavily reliant on imports.
Prime Minister Narendra Modi in December 2025 directed both the central government and state authorities to identify 100 products suitable for local manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged companies to analyze official import statistics and boost 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 organized sector-specific groups involving relevant ministries.
Six specialized teams analyze key industries
Each group focuses on a distinct segment of the economy. One team reviews pharmaceuticals and medical devices, while another assesses chemicals, textiles, and footwear. Separate groups are tasked with evaluating capital goods, automobiles, electric vehicles, energy equipment, and infrastructure machinery. The review also includes civilian aerospace, defense-related products, and electronics. Officials utilize detailed trade records at the product level to compare import values, quantities, and sourcing countries.
India currently operates production-linked incentive schemes across 14 sectors, including electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. Additionally, the government promotes semiconductor manufacturing and the domestic production of electronic components through dedicated programs. Pharmaceutical incentives target 41 bulk drugs that are heavily imported. Solar manufacturing efforts aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Trade data informs the evaluation process
The Commerce Ministry maintains digital trade platforms containing detailed country and product-level import information. Officials and businesses leverage these records to monitor shifts across major categories. From April to June 2026, India imported goods valued at $216.18 billion, compared to $180.31 billion in the same period of the previous year. The rise reflects the increased import expenses from the prior financial year. Authorities are analyzing this data to refine the product list and identify manufacturing opportunities.
This current review expands on government initiatives to connect customs classifications with responsible industrial agencies. Such integration helps officials pinpoint high-volume imports and assign follow-up tasks to the appropriate department. The central government has confirmed the formation of the six-sector review groups and emphasizes their focus on boosting domestic production. However, it has not yet disclosed the final list of products, detailed import values per item, or any new incentive schemes. Any product-specific programs would require an official notification from the relevant ministry.