Budget likely to offer support to boost domestic production of 100 products

The central government may announce special support in the upcoming 2027-28 budget to promote the domestic production of about 100 different items. According to a Business Standard report, preparations for this have been completed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry. This list includes items for which India is currently heavily dependent on foreign imports.

According to government officials, extensive consultations have been held with various ministries and private sector experts to prepare this list. These 100 products mainly include items from sectors such as auto components, chemicals, and machinery. The main objective of this initiative is to reduce dependence on imports by increasing manufacturing capacity in the country. These products are either currently not being made in India or their production capacity is significantly lower than the demand. The government aims to increase the production of these items and make them available in domestic and global markets.

These details will be included in the recommendations to be sent to the Ministry of Finance in the upcoming budget. The proposed support measures may include financial and non-financial incentives, collaboration for Research and Development (R&D), trade and tariff-related changes, and strengthening testing and certification infrastructure. The Union Budget 2027-28 is likely to be presented on February 1 next year.

According to data from the Ministry of Commerce, imports of chemicals increased by 10.5 percent to $16.1 billion during April-September 2026-27. Additionally, imports of dyeing and coloring materials increased by 30 percent to $2.7 billion. At the same time, imports of electrical and non-electrical machinery increased by 15.5 percent to $34.1 billion, and imports of transport equipment were recorded at $18.21 billion, an increase of 9.21 percent.

The government has already implemented various schemes to boost domestic production. These include important schemes such as the Production Linked Incentive (PLI) scheme for 14 sectors, PM Gati Shakti, National Logistics Policy, and Bharat Industrial Development Scheme (BHAVYA). DPIIT is a nodal department of the Government of India, responsible for industrial development, promotion of investment, and regulation of internal trade in the country. Various policy decisions have been taken by this department in the past as well to boost national priorities like Make in India.