Domestic Manufacturing in India: 100 Products Targeted by DPIIT

Domestic manufacturing in India is set for a fresh policy push, with the government considering support for 100 import-dependent products in the Union Budget 2027-28.

The Department for Promotion of Industry and Internal Trade (DPIIT) has completed an exercise to identify products that are either not made locally or are produced in insufficient quantities.

The list may cover intermediate and capital goods across sectors such as auto components, chemicals and machinery.

The proposed measures aim to strengthen supply chains, reduce import dependence and help Indian manufacturers serve domestic and global markets. DPIIT will submit its recommendations to the Finance Ministry.

What Products Could Benefit from Domestic Manufacturing Support?

The exercise followed consultations with ministries and industry. The complete list and final support package have not yet been disclosed. Identified categories include:

• Auto components
• Chemicals and industrial intermediates
• Electrical and non-electrical machinery
• Capital goods and transport-related equipment

An official said the products were selected because domestic production is absent or insufficient. The aim is to build capacity, not simply replace imports.

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How Could the FY28 Budget Support Domestic Manufacturing in India?

The recommendations may include:

• Fiscal and non-fiscal support.
• Research and development assistance.
• Trade and tariff measures.
• Stronger testing and certification infrastructure.

DPIIT Secretary Amardeep Singh Bhatia had earlier said some products were not being made in India despite existing manufacturing capabilities, and that technology gaps could be bridged.

Can Import Trends Create Opportunities for Indian Manufacturers?

Commerce Ministry data shows that during April-September FY27:

• Chemical imports rose 10.5 percent to USD 16.1 billion.
• Electrical and non-electrical machinery imports increased 15.5 percent to USD 34.1 billion.

• Transport equipment imports grew 9.21 percent to USD 18.21 billion.

The figures point to opportunities for domestic manufacturing in India, particularly among component makers, industrial suppliers and equipment producers.

The recommendations will feed into the Union Budget 2027-28, expected on February 1, 2027. The push adds to existing initiatives, including PLI schemes across 14 sectors, PM GatiShakti and the National Logistics Policy.