'Track imports, manufacture in India': Piyush Goyal pushes swadeshi production
The Ministry of Commerce and Industry has directed Indian businesses to systematically track imports and identify specific product categories where domestic manufacturing can substitute imports — a formalised import-mapping exercise to drive self-reliance.
The push is part of India's broader Atmanirbhar Bharat (Self-Reliant India) strategy, targeting structural reduction of import dependence in sectors identified as strategic.
India's merchandise exports have grown to approximately $863 billion (goods and services combined for FY26); the government has an ambitious target of $2 trillion in total exports by 2030.
Free trade agreements are being expanded and deepened as a complementary strategy to enhance market access for Indian exporters.
A Swadeshi trade fair (Bharat Vyapar Mahotsav) was announced to showcase India-made products domestically and internationally, amplifying the swadeshi production narrative.
India's manufacturing sector's share of GDP remains approximately 16–17%, still short of the 25% of GDP target set for 2030.
Make in India and Atmanirbhar Bharat: Policy Architecture
Make in India was launched in September 2014 by the Ministry of Commerce and Industry, with the objective of transforming India into a global manufacturing hub. It initially targeted 25 sectors for focused development, subsequently expanded to include new-age sectors like defence, semiconductors, and renewable energy. The goal was to raise manufacturing's share of GDP from ~15% to 25% by 2022 (target since revised to 2025–30). Atmanirbhar Bharat (Self-Reliant India), announced in May 2020 as part of the COVID-19 economic response package (₹20 lakh crore stimulus), broadened the concept to include supply-chain resilience, strategic sector indigenisation, and reduction of critical import dependence — especially in defence, pharmaceuticals, electronics, and solar equipment.
Key Details
- Make in India launched: September 25, 2014; nodal ministry: Ministry of Commerce and Industry (DPIIT).
- Original 25 sectors; expanded to 27 sectors covering traditional and new-age industries.
- Manufacturing GDP share: ~16–17% (current); target: 25% by 2030.
- Atmanirbhar Bharat announced: May 12, 2020 (₹20 lakh crore economic package).
- Both initiatives are anchored in the DPIIT under the Ministry of Commerce and Industry.
The import-tracking directive is the operational implementation of Atmanirbhar Bharat's import-substitution pillar — converting macro-level self-reliance rhetoric into actionable, product-specific manufacturing targets by cataloguing what India imports and where domestic capacity can be built.
Production Linked Incentive (PLI) Scheme: India's Manufacturing Accelerator
The Production Linked Incentive (PLI) Scheme is India's flagship industrial policy instrument to boost domestic manufacturing and exports by providing financial incentives linked to incremental production above a base year. It was first announced in Budget 2021-22 (presented February 1, 2021) with an overall outlay of ₹1.97 lakh crore (approximately $26 billion) across 14 key sectors over five years from FY2021-22. Each sector has a designated nodal ministry responsible for implementation. The scheme targets domestic and foreign manufacturers who commit to producing in India above baseline levels.
Key Details
- PLI announced: Budget 2021-22 (February 1, 2021); total outlay: ₹1.97 lakh crore (~$26 billion).
- Number of sectors: 14 (including mobile phones/electronics, pharmaceuticals, food processing, textiles, automobiles, solar PV modules, white goods, specialty steel, advanced chemistry cells, and others).
- Investment realised under PLI by March 2025: approximately ₹1.76 lakh crore.
- Total sales by PLI participants (by March 2025): exceeding ₹16.5 lakh crore.
- Recent addition: PLI for non-semiconductor electronics components (₹22,919 crore) — approved by Cabinet.
- Electronics ecosystem target: $500 billion domestic ecosystem by 2030-31.
Sector-Nodal Ministry Examples: - Food Processing: Ministry of Food Processing Industries (MoFPI) — outlay ₹10,900 crore. - Textiles (MMF/Technical): Ministry of Textiles — outlay ₹10,683 crore. - Automobiles/Auto Components: Ministry of Heavy Industries — outlay ₹25,938 crore. - Solar PV Modules: Ministry of New and Renewable Energy (MNRE) — outlay ₹4,500 crore. - Mobile Phones/Electronics: Ministry of Electronics and IT (MeitY).
The import-tracking exercise is designed to identify gaps not yet addressed by existing PLI sectors — essentially a pipeline-building tool to extend PLI logic to new categories where India's import bill is large and domestic capacity is absent.
Import Substitution Industrialisation (ISI) vs. Export-Led Growth: India's Hybrid Strategy
Import Substitution Industrialisation (ISI) is an industrial strategy where a country develops domestic industries to produce goods it previously imported, typically protected by tariffs and non-tariff barriers. India followed ISI extensively from the 1950s to the 1980s under the Nehruvian planning model. The 1991 liberalisation shifted India toward a more export-led growth model. The current Atmanirbhar strategy represents a hybrid approach: reducing import dependence in strategic/critical sectors (semiconductors, defence, pharmaceuticals, renewable energy components) while simultaneously pursuing export competitiveness through FTAs, PLI, and export promotion. This contrasts with the pure ISI of the pre-reform era by targeting specific strategic sectors rather than broad economy-wide import replacement.
Key Details
- Pre-1991 ISI India: high tariff walls, licensing regime, import controls — resulted in inefficiency and "Hindu rate of growth" (~3.5% average growth, 1950–1980).
- Post-1991: tariff reduction from average ~150% to current ~13–14% MFN tariff rate (goods).
- Current import substitution: targeted in semiconductors (₹76,000 crore India Semiconductor Mission), defence, solar equipment, active pharmaceutical ingredients (APIs).
- Export target: $2 trillion by 2030 (goods + services); current level ~$863 billion (FY26).
- Manufacturing's projected contribution to create 3–4 crore skilled jobs if 25% GDP target is met.
The import-mapping exercise is a data-driven update to ISI thinking — rather than blanket protection, it targets specific tariff lines where strategic domestic manufacturing is feasible, linking identified gaps to PLI or other incentive mechanisms.
Export Promotion Infrastructure: FTAs, SEZs, and Institutional Architecture
India's export promotion ecosystem includes: (1) FTAs/CEPAs for market access; (2) Special Economic Zones (SEZs) under the SEZ Act, 2005 (nodal ministry: Ministry of Commerce and Industry; DPIIT); (3) Export Promotion Councils (EPCs) for sector-specific support; (4) DGFT (Directorate General of Foreign Trade) under MoCI for policy administration, licensing, and Advance Authorisation Schemes; (5) RoDTEP (Remission of Duties and Taxes on Exported Products) scheme — replaced MEIS in 2021 to be WTO-compliant, refunding embedded taxes and duties to exporters.
Key Details
- DGFT: administers FTP (Foreign Trade Policy); current FTP (2023) is in force.
- RoDTEP: launched January 1, 2021; WTO-compliant; replaced MEIS (Merchandise Exports from India Scheme).
- SEZ Act: 2005; provides tax and customs duty exemptions for units established in designated zones.
- Bharat Vyapar Mahotsav: domestic-focused trade fair to promote swadeshi products; announced by Commerce Ministry.
The swadeshi trade fair and import-tracking drive are the demand-side and supply-side complements to FTA-led market access — building domestic manufacturing capacity to supply both the Indian market (displacing imports) and international markets (via FTA preferential routes).
- Make in India launched: September 25, 2014; nodal body: DPIIT, Ministry of Commerce and Industry.
- Atmanirbhar Bharat announced: May 12, 2020; initial package: ₹20 lakh crore.
- PLI scheme outlay: ₹1.97 lakh crore (~$26 billion) across 14 sectors (Budget 2021-22).
- PLI investments realised by March 2025: ~₹1.76 lakh crore.
- PLI participant sales by March 2025: exceeding ₹16.5 lakh crore.
- Manufacturing share of GDP: ~16–17% (current); target: 25% by 2030.
- India's total exports (goods + services) FY26: ~$863 billion; target: $2 trillion by 2030.
- Electronics ecosystem target: $500 billion by 2030-31.
- India's MFN tariff average (goods): ~13–14% (post-liberalisation; down from ~150% pre-1991).
- RoDTEP: launched January 1, 2021; replaced MEIS; WTO-compliant refund of embedded taxes to exporters.
- DGFT: administers Foreign Trade Policy (FTP 2023); issues Advance Authorisation, RoDTEP, and export licences.
- SEZ Act: 2005; nodal ministry: Ministry of Commerce and Industry (DPIIT).
- PLI for Food Processing: ₹10,900 crore; nodal ministry: Ministry of Food Processing Industries (MoFPI).
- PLI for Textiles (MMF/Technical Textiles): ₹10,683 crore; nodal ministry: Ministry of Textiles.