Will the Upcoming Budget Propel India's Manufacturing Sector? Key Products Under Review!

Government Plans to Enhance Domestic Manufacturing

New Delhi: The government is expected to introduce measures in the upcoming Budget aimed at enhancing the domestic production of 100 specific products, which include intermediates and capital goods across various sectors, according to an official source.

The Department for Promotion of Industry and Internal Trade (DPIIT), part of the Commerce and Industry Ministry, has finalized a list of 100 products that India currently imports heavily.

These products may encompass categories such as automotive components, chemicals, and machinery.

The official noted that this identification process was conducted after extensive discussions with different ministries and private sector stakeholders.

The initiative seeks to bolster domestic manufacturing capabilities and lessen reliance on imports. Many of these products are either not produced in India or are insufficiently manufactured at present. The goal is to enhance production for both local and international markets.

The ministry plans to relay this information to the finance ministry as part of its recommendations for the Budget for 2027-28.

Potential support measures could encompass both fiscal and non-fiscal strategies, including research and development assistance, trade and tariff initiatives, and improvements to testing and certification facilities.

The Union Budget for 2027-28 is anticipated to be unveiled on February 1 of the coming year.

According to data from the commerce ministry, India's imports of chemicals surged by 10.5% to reach USD 16.1 billion during the first half of the fiscal year 2026-27.

Additionally, imports of dyeing, tanning, and coloring materials increased by approximately 30% to USD 2.7 billion during the same timeframe. Likewise, imports of both electrical and non-electrical machinery and transport equipment rose by 15.5% and 9.21%, totaling USD 34.1 billion and USD 18.21 billion, respectively, in the first half of this fiscal year.

The government is implementing a range of initiatives to promote domestic manufacturing, including production-linked incentive schemes for 14 sectors, the PM GatiShakti initiative, the National Logistics Policy, and the Bharat Audyogik Vikas Yojna (BHAVYA).