Govt Maps Imports To Identify Products For Domestic Substitution: Commerce Secretary

The commerce ministry is working on a detailed plan to reduce India’s import dependence in select products, Commerce Secretary Sunil Barthwal said on Monday, outlining a strategy to identify goods that can be substituted with domestic production.

The government has categorised imports into three broad segments — raw materials, intermediates and finished products. The objective, officials said, is to pinpoint areas where India already has sufficient domestic manufacturing capacity and where industry can step in to replace foreign supplies.

"Engineering goods, chemicals and plastics are among the key categories under review," the commerce secretary noted, adding that the ministry would undertake a comprehensive exercise to determine which products can be feasibly made and supplied within the country. The findings will form the basis for industry-specific roadmaps.

The move aligns with India’s broader push for resilient supply chains and reduced external vulnerabilities, particularly at a time when global trade dynamics are shifting. Import substitution has been identified as a critical lever for strengthening India’s industrial base, lowering the trade deficit, and creating jobs.

Officials said the data gathered through this mapping exercise will also help current and prospective manufacturers frame new business strategies. "The idea is to give industry visibility, where the opportunities lie, which products can be developed within India, and how supply chains can be restructured," he said.

The exercise comes alongside ongoing FTA negotiations and export promotion measures, underscoring the government’s two-pronged approach of boosting outbound shipments while lowering reliance on imports in select sectors.