DPIIT seeks Fillip for local mfg of 100 goods in budget

Economic Times - Policy · Published 10 November 2026 · Last updated 10 November 2026

DPIIT will recommend a list of 100 import‑dependent products for targeted policy support in the FY28 budget to boost domestic manufacturing.

Key points

The Department for Promotion of Industry and Internal Trade (DPIIT) identified 100 products – ranging from machinery to chemicals and plastics – that require policy support, to be submitted to the Finance Ministry for the FY28 budget.
The exercise began in June 2026, analysing around 500 heavily imported items such as fertilisers, silicon wafers and carbon fibres to pinpoint domestic manufacturing gaps.
High import dependence is defined as imports meeting 60 % or more of domestic demand; medium dependence covers 30 %–59 % of demand.
Six sector‑specific working groups were set up by the government to examine production capacity, bottlenecks and ecosystem needs for the shortlisted goods.
Commerce Minister Piyush Goyal met Skoda Auto Volkswagen on 9 Nov 2026 to discuss expanding automobile exports and increasing localisation, especially in electric‑vehicle (EV) manufacturing.
The DPIIT’s approach emphasises ecosystem development, not merely import substitution, by involving stakeholders to address technology, skill and infrastructure gaps.
The government plans to use the list to design incentives such as tax rebates, credit guarantees and R&D subsidies for firms that set up domestic production of the identified products.
Opposition parties have warned that without clear timelines, the move could become another ‘paper policy’ and may strain fiscal resources.

India’s import‑substitution drive dates back to the 1990s, but accelerated after the 2020‑21 ‘Make in India’ initiative aimed at reducing reliance on foreign goods.
In 2022, the government launched the ‘One District One Product (ODOP)’ scheme to promote district‑level manufacturing, laying groundwork for product‑specific incentives.
The Foreign Trade Policy 2023‑28 lowered tariffs on many capital goods, prompting concerns that reduced duties could undermine domestic manufacturing incentives.
Earlier, the Finance Ministry’s 2024 budget introduced Production‑Linked Incentive (PLI) schemes for electronics and pharmaceuticals, showing a pattern of sector‑focused support.
The DPIIT’s six working groups were constituted in August 2026, each covering sectors such as electronics, pharma‑medical, capital goods, auto & EVs, and advanced materials.

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