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India’s $51 bn import habit faces a homegrown fix

By · Published by Everything Blog

In short

India’s government has identified 100 items worth $51 billion in imports that could be replaced by domestic manufacturing, aiming to reduce the country’s dependence on foreign goods and manage supply-chain risks.

Key points

  • The move aims to reduce import dependence through capacity building or better use of exis…: The move aims to reduce import dependence through capacity building or better use of existing facilities.
  • China’s share in India’s imports of industrial goods rose to 30% from 21% over 15 years.: China’s share in India’s imports of industrial goods rose to 30% from 21% over 15 years.
  • The initiative is part of a larger effort to narrow the trade deficit.: The initiative is part of a larger effort to narrow the trade deficit.

Sources checked by our analysis pipeline: 1

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.

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)

Original source: economictimes.indiatimes.com

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