DPIIT identifies 100 import-dependent products as government considers fiscal incentives, R&D support and tariff measures to strengthen India’s manufacturing ecosystem.
Highlights
- Government may announce support measures for 100 products in Budget 2027-28.
- DPIIT has identified products heavily dependent on imports.
- Auto components, chemicals, machinery and capital goods could benefit.
- Proposed measures may include fiscal incentives, R&D support and tariff reforms.
- Machinery imports rose 15.5% to $34.1 billion during April–September 2026.
- The initiative aims to boost domestic production and global competitiveness.
Budget 2027: Government May Announce Manufacturing Push for 100 Products to Reduce Import Dependence
New Delhi, November 9, 2026: The central government is considering fresh support measures in the upcoming Union Budget 2027-28 to strengthen domestic manufacturing of 100 products across key industrial sectors. The proposed initiative aims to reduce India’s dependence on imports while expanding domestic production capabilities and improving the country’s competitiveness in global markets.
According to an official, the Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has completed an extensive exercise to identify 100 products for which India remains heavily dependent on foreign suppliers.
These products include intermediates and capital goods from sectors such as automobile components, chemicals and industrial machinery.
Focus on Products With High Import Dependence
The identification exercise was undertaken following detailed consultations with various government ministries and private-sector stakeholders.
The official said several identified products are either not currently manufactured in India or are produced in insufficient quantities to meet domestic demand.
The objective is to encourage local manufacturing, reduce import bills and create opportunities for Indian companies to serve both domestic and international markets.
What Support Could Budget 2027 Offer?
The Commerce and Industry Ministry is expected to submit its recommendations to the Finance Ministry ahead of the Union Budget 2027-28, likely to be presented on February 1, 2027.
Potential support measures include fiscal and non-fiscal incentives, research and development assistance, trade and tariff-related interventions, and improvements in testing and certification infrastructure.
However, the final measures will depend on government approval and budgetary decisions.
India’s Import Bill Highlights the Challenge
Recent trade data underscores the need to strengthen domestic manufacturing.
During April–September 2026-27, India’s chemical imports increased 10.5% to $16.1 billion. Imports of dyeing, tanning and colouring materials surged nearly 30% to $2.7 billion.
Meanwhile, imports of electrical and non-electrical machinery rose 15.5% to $34.1 billion, while transport equipment imports increased 9.21% to $18.21 billion.
Building on Existing Manufacturing Initiatives
The proposed initiative would complement existing government programmes, including Production Linked Incentive (PLI) schemes covering 14 sectors, PM GatiShakti, the National Logistics Policy and Bharat Audyogik Vikas Yojna (BHAVYA).
By targeting products with significant import dependence, the government hopes to strengthen industrial supply chains, attract investments and improve India’s position as a global manufacturing hub.
