India Reviews 500 High-Import Products to Strengthen Domestic Manufacturing and Supply Chains

Government examines import dependence across key sectors as part of efforts to reduce import bill and enhance production resilience

The government has initiated a review of approximately 500 heavily imported products, including machinery, fertilizers, chemicals, cotton staple fibre, plastics, silicon wafers, and carbon fibres, to identify areas where domestic production can be expanded.

According to officials, the initiative aims to reduce import dependence and strengthen supply chain resilience. The exercise comes amid ongoing global uncertainties and concerns over disruptions to international trade flows.

The Department for Promotion of Industry and Internal Trade (DPIIT) is coordinating with various ministries to collect information on import dependence, investment requirements, production capacity, and the commercial viability of local manufacturing. The assessment also considers national strategic relevance before recommending products for development.

Officials indicated that the department is analysing production capacities and bottlenecks across industries. The review seeks to determine the extent to which domestic demand is currently being met through imports and identify opportunities to increase local manufacturing.

The exercise focuses on ensuring continuity, resilience, and stability in domestic manufacturing, particularly in essential and strategic sectors. The review also covers selected components, parts, and minerals, including graphite.

DPIIT is expected to shortlist around 100 items where import dependence is high but domestic production capabilities can be developed or expanded. Officials noted that products with significant import reliance and strong local manufacturing potential are being prioritised.

A high import dependence category generally refers to products where 60% or more of domestic demand is met through imports, while medium dependence ranges between 30% and 60%.

Officials stated that sectors under review include electronics, chemicals, machinery, textiles, and civil aviation. Certain chemical products are also being examined due to their import volumes and domestic production potential.

India’s goods import bill stood at $774.98 billion in FY26, led by oil at $174 billion, electronics at $116.17 billion, and gold at $72 billion. Imports of organic and inorganic chemicals were valued at $28 billion during the last fiscal year.

Among the products being studied are makeup preparations, dishwashers, industrial valves, and selected silicon wafer and graphite-related products.

The review follows directions to identify opportunities for domestic manufacturing expansion and preserve foreign exchange by reducing import dependence where commercially viable.