Business News : China's imports into India have increased significantly in the last few years, due to which India's trade deficit with China has crossed $100 billion. In response, the government is preparing to make a big announcement to promote domestic manufacturing in the upcoming budget. According to reports, the government may extend support measures in the next budget to promote domestic production of 100 products, including intermediate products and capital goods used in various sectors.
100 products identified
The Department of Industry and Internal Trade Promotion (DPIIT) under the Ministry of Commerce and Industry has completed the process of identifying 100 products for which India is heavily dependent on imports. These products may include items from sectors such as automotive components, chemicals and machinery. The official said that the process of identifying these products was completed after extensive consultation with various ministries and the private sector.
The Ministry of Commerce will share the details with the Ministry of Finance
The move, he said, is aimed at strengthening domestic production and reducing dependence on imports. At present, these products are either not manufactured in India or not produced in sufficient quantities. The aim is to expand production for local and global markets. The Ministry will share these details with the Finance Ministry as part of its recommendations for the Budget (2027-28). Supporting measures may include financial and non-financial measures, support for research and development (R&D), trade and tariff-related measures, and strengthening testing and certification infrastructure. The Union Budget 2027-28 is likely to be presented on February 1 next year.
How much did the import of which goods increase?
India's chemical imports rose 10.5 percent to $16.1 billion in the April-September period of the 2026-27 fiscal year, according to commerce ministry data. During the same period, imports of materials used in dyeing, leather processing, and dyeing rose nearly 30 percent to $2.7 billion.
Similarly, imports of machinery (electrical and non-electrical) and transport equipment increased by 15.5 percent and 9.21 percent to $34.1 billion and $18.21 billion, respectively, in the first half of the current fiscal year. The government is implementing several measures to promote local manufacturing. These include the Production-Linked Incentive (PLI) schemes for 14 sectors, the PM Kinetics and National Logistics Policy, and the Bharat Industrial Development Scheme (BHAVYA).