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Is the dominance of foreign goods going to end in India? Prime Minister Narendra Modi’s government is working on a ‘master plan’ to make the country’s supply chain completely secure and reduce the pressure on foreign exchange reserves. The government is now preparing a list of more than 100 products which till now we import in large quantities from abroad. The objective is clear – now these goods will be made in India only and for this the government will give huge subsidies and incentives to the companies.

List of 100+ products ready, everything from chip to fertilizer will be indigenous

According to a Bloomberg report, the Prime Minister’s Office (PMO) has ordered the concerned ministries to identify the sectors where India’s dependence on imports is highest. The Ministry of Commerce and Industry is now making a list of more than 100 such products, which include sectors like electronics, chemicals, essential medicines, fertilizers, semiconductors (chips), automobiles and machinery. The government’s aim is to increase the production of these things in India to such an extent that there is no need to import them from outside.

1.9 trillion boost for chips and smartphones

The government has also taken steps in this direction. Recently, the Cabinet has approved further increasing financial assistance to 1.9 trillion rupees ($ 19.7 billion) for chip and smartphone production. Apart from this, the government is also playing a big gamble in the matter of fertilizer. A target has been set to reduce the import of fertilizer by 30 percent in the next three years, for which closed fertilizer plants are being restarted.

Dependence on China and Middle East will reduce

India imported about $775 billion last fiscal year, the bulk of which came from China and the Middle East. Geopolitical tensions (such as the recent Iran crisis) have highlighted the risks to India’s supply chain. In view of this, a ‘task force’ has been formed under the leadership of former RBI Governor and Principal Secretary in PMO Shaktikanta Das. This task force is preparing a blueprint for ‘Import Substitution’ to make India a global manufacturing hub.

Will the market equation change?

The government is now making new policies to attract private and foreign investors so that they set up factories in India. Under the leadership of Piyush Goyal, the Commerce Ministry is working with states and industry to identify products that can be made cheaper and better in India. In view of the possible sanctions on Russian oil and gas from the US, India is moving fast on the path of becoming self-reliant in agricultural products like pulses and edible oils. The government’s direct message is to reduce foreign dependence, strengthen domestic supply chains and save foreign exchange.