India considers measures to boost local production of 100 critical inputs to cut import reliance, government official says

India is taking steps to encourage the local manufacturing of 100 key items that are currently imported. This initiative aims to decrease dependence on foreign suppliers, especially from China, to enhance domestic production capabilities. The gove...

IANS
India considers measures to boost local production of 100 critical inputs to cut import reliance
India is considering measures to promote local production of 100 items that it has identified as inputs critical for its factories, as it looks to cut its reliance on overseas suppliers.

A senior government official said on Tuesday that the 100 items have been shortlisted from a wider selection of goods that total up to $51 billion in imports, according to a Reuters report.

Also read: India expected to extend duty-free cotton imports through December, sources say


The shortlist is part of a larger exercise to find imports that can be made at home. In July, Reuters had reported, citing three government sources, that India was seeking to push domestic manufacturing for items worth $51 billion in imports. The items span sectors from footwear and textiles to electric vehicles and solar panels, one of the sources had told Reuters.

India imported goods worth $775 billion in the 12 months ended March 2026, Reuters reported in July. An internal government analysis showed that imports worth $398 billion have the potential to be replaced by local manufacturing, one of its sources said.

The push comes as the government tries to manage supply-chain risks heightened by geopolitical tensions, according to Reuters. It also aims to reduce dependence on China and narrow the trade deficit, the report said.
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The idea of a list of import-dependent products is not new. In September 2025, Commerce Secretary Sunil Barthwal said the commerce ministry would put a list of 100 imported products in the public domain so that current and prospective manufacturers could look at opportunities, according to an ET report. He had said the aim was to reduce import dependence through capacity building or better use of existing facilities.

The dependence is most visible in industrial goods. China’s share in India’s imports of industrial goods rose to 30 per cent from 21 per cent over 15 years, according to a report by the Global Trade Research Initiative (GTRI). Electronics, telecom and machinery are among the categories where reliance is highest.

GTRI has said industry depends heavily on Chinese inputs such as electronic parts, EV batteries, solar modules, active pharmaceutical ingredients and specialty chemicals.

(With inputs from Reuters)
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