NEW DELHI, INDIA / RankWire.AI / – India has launched a comprehensive review aimed at identifying roughly 100 imported items that local producers could manufacture on a larger scale. Led by the Department for Promotion of Industry and Internal Trade, this effort is organized into six specialized groups. The assessment covers sectors including health care, transportation, energy, electronics, chemicals, textiles, and industrial machinery. The government has yet to publish the finalized list or disclose specific incentives for individual products.
This initiative coincides with India’s broader efforts to address a significant merchandise trade deficit. In fiscal 2025-26, goods imports reached $774.98 billion, up from $721.20 billion the previous year. Meanwhile, merchandise exports amounted to $441.78 billion, resulting in a trade shortfall of $333.19 billion. Excluding petroleum, gems, and jewelry, imports increased to $498.56 billion, according to data from the Commerce Ministry. These statistics highlight the sectors still heavily reliant on imports.
Prime Minister Narendra Modi requested both the central government and state authorities in December 2025 to identify 100 products suitable for local manufacturing. Subsequently, Commerce and Industry Minister Piyush Goyal encouraged companies to review official import data and bolster production in sectors with high import dependence. He emphasized the importance of capital goods and medical devices. The Department for Promotion of Industry and Internal Trade then coordinated the sector groups with relevant ministries.
Six teams analyze key industries
Each team is responsible for a specific segment of the economy. One group focuses on pharmaceuticals and medical devices, while another reviews chemicals, textiles, and footwear. Separate units examine capital goods, automobiles, electric vehicles, energy infrastructure, and machinery. The review also includes civil aerospace, defense-related products, and electronics. Officials are utilizing detailed trade records at the product level to compare import values, quantities, and source countries.
India already implements production-linked incentive schemes across 14 sectors, including electronics, pharmaceuticals, automobiles, batteries, telecommunications equipment, solar modules, textiles, and medical devices. The government additionally promotes semiconductor manufacturing and the domestic production of electronic components through dedicated initiatives. Pharmaceutical incentives target 41 bulk drugs due to their heavy reliance on imports. Solar manufacturing schemes aim to develop nearly 48 gigawatts of high-efficiency module capacity.
Trade data guides the review process
The Commerce Ministry maintains digital trade platforms with detailed country and product-specific import data. Officials and industry players utilize these records to monitor shifts across major categories. From April to June 2026, India imported goods worth $216.18 billion, compared to $180.31 billion during the same period in the previous year. The rise reflects increased import costs from the prior financial year. Authorities leverage this data to refine the list of targeted products and identify manufacturing opportunities.
This ongoing review expands on government efforts to link customs classifications with responsible industrial departments. Such alignment helps officials pinpoint high-volume imports and assign relevant follow-up actions to the appropriate agencies. The government has confirmed the six-sector review and its focus on boosting domestic production. However, it has not yet released the final list of products, detailed import figures for each item, or any new support schemes. Any product-specific initiatives would require separate official notifications from the respective ministries.