India: The Indian government has identified $51 billion worth of critical imports for immediate replacement through domestic manufacturing as part of a broader strategy to reduce reliance on overseas suppliers and strengthen economic resilience, according to government sources. The initiative is part of Prime Minister Narendra Modi’s push to expand local manufacturing and lower India’s dependence on imports, particularly from China.
Why Is India Targeting $51 Billion in Critical Imports?
Government sources said an internal assessment found that imports worth $398 billion could potentially be replaced by domestic production, with $51 billion identified as critical manufacturing inputs requiring immediate attention. Around 100 products across sectors including textiles, footwear, electric vehicles, and solar panels have been prioritised for policy support, incentives, and subsidies to boost local production.
What Is Driving India’s Manufacturing Strategy?
Officials said the initiative aims to strengthen supply chain resilience amid rising geopolitical tensions, reduce dependence on Chinese imports, and narrow India’s trade deficit. India imported goods worth $775 billion during the 12 months ending March 2026, and the government is seeking to expand domestic industrial capacity to improve long-term economic competitiveness.