Key Facts

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, is working on import substitution by promoting domestic manufacture of intermediate and capital goods India currently imports. DPIIT has listed 100 products that are either not made in India or made in too small a quantity, such as auto components, chemicals, machinery and other intermediate and capital goods; support for making them is expected to get priority in the Union Budget 2027-28.

GK Context

The Department for Promotion of Industry and Internal Trade (DPIIT), formed in 2019 by renaming the Department of Industrial Policy and Promotion (DIPP), is the nodal agency for industrial policy, FDI policy and ease-of-doing-business reforms under the Ministry of Commerce and Industry. 'Import substitution' is an industrial policy strategy aimed at replacing imports with domestically produced goods to boost self-reliance and reduce trade deficit, aligning with the broader Aatmanirbhar Bharat initiative. Intermediate goods are inputs used in further production (e.g., auto components, chemicals), as distinct from finished consumer goods.