India Identifies $51 Billion in Critical Imports for Manufacturing to Reduce Reliance on Overseas Suppliers: Report

India is seeking to push domestic manufacturing across a pool of items currently worth $51 billion in imports, three government sources said, as Prime Minister Narendra Modi seeks to reduce the country's reliance on overseas suppliers.

The South Asian nation imported $775 billion worth of goods in the 12 months ended March 2026 and an internal government analysis showed that imports worth $398 billion have the potential to be replaced by local manufacturing, the first government source said.

Of this, about $51 billion in imports were viewed as those that are seen as critical inputs of manufacturing of items across a range of industries from textiles to solar panels, the source said, adding that about 100 items from this set would be taken up for immediate action.

The three government sources, who are familiar with the exercise, did not want to be identified because it was confidential. India's trade ministry did not immediately respond to Reuters' request for comment.

India's latest push to boost domestic production comes as it grapples with supply-chain risks heightened by geopolitical tensions. It is also seeking to reduce its dependence on China and narrow its trade deficit.

The items span sectors from footwear to textiles, electric vehicle industries and solar panels, one of the sources said.

"The identification is based on the fact that these are critical for economic resilience, cutting reliance on suppliers such as China, and to achieve cost competitiveness through incentives and subsidies," another government source said.

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