Government Targets 120 Products to Boost Local Production Efforts
NEW DELHI: The Indian government has identified approximately 120 products for a domestic manufacturing initiative aimed at reducing import dependence. This initiative, led by the Department for Promotion of Industry and Internal Trade (DPIIT), includes a diverse range of items such as chemicals, pharmaceuticals, medical technology, machine tools, and construction equipment. A specific focus is also being placed on tunnel boring machines following China’s restrictions on their exports.
The list of targeted products encompasses various sectors, including aerospace maintenance, consumer goods related to the footwear value chain, and textile machinery. Discussions are ongoing with other government agencies to finalize the approach for this manufacturing push.
Planned Interventions
To support this initiative, the government plans three types of interventions. The first involves short-term protection measures to help the identified products compete against foreign imports, particularly from China, until supply chains can be diversified. This strategy mirrors previous efforts seen in the mobile phone sector.
The second intervention will address cost disabilities through incentives, which may include capital incentives or phased support linked to turnover. Additionally, research and development assistance is being considered, as some products require local technology development. Over the past six to eight years, the government has aimed to bolster local production across various sectors, including pharmaceuticals, electronics, and solar power equipment.
Significant funding has been allocated through Production-Linked Incentives (PLIs) and semiconductor missions, reflecting the growing demand for domestically produced components. The government’s strategy is influenced by past experiences, particularly in battery and solar panel production, where reliance on imported technology has been a challenge.
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