India Identifies 100 Products to Boost Local Manufacturing

Why this is here: Singapore accounted for 37 percent of foreign direct investment equity inflows into India between April and December 2025.

India’s Department for Promotion of Industry and Internal Trade (DPIIT) is identifying roughly 100 products for increased domestic manufacturing. DPIIT Secretary Amardeep Singh Bhatia announced the initiative, aiming to reduce reliance on imports amid global supply chain shifts. This effort builds on existing programs like Production Linked Incentive schemes and seeks to address gaps in India’s manufacturing ecosystems.

The government plans to collaborate with industry to pinpoint products—including auto components—currently made inadequately or not at all in India. Officials hope to expand manufacturing for both domestic use and export, recognizing that India possesses the engineering skills and market size for greater local production. They are also streamlining foreign investment approvals and pursuing free trade agreements to support this expansion.

Despite progress, manufacturing still contributes roughly 15-17% to India’s GDP, falling short of earlier goals. Challenges remain in areas like logistics, infrastructure, and skill development, as well as integrating new technologies like artificial intelligence. The DPIIT continues to assess these issues and refine strategies for sustained industrial growth.