Government Forms Six Sector-Specific Working Groups

The Indian government constituted six sector-specific working groups on 4 June 2026 to identify up to 100 products for domestic manufacturing and import substitution. The groups cover pharmaceuticals, biotechnology and medical devices; chemicals and petrochemicals, textiles and footwear; capital goods, automotive and electric vehicles, and advanced capital goods; energy; construction equipment and infrastructure; and defence and aerospace for civilian applications and electronics.

Working Group Structure

Each working group is chaired by the secretary of the Department for Promotion of Industry and Internal Trade (DPIIT). The members are drawn from ministries and departments such as commerce, DPIIT, NITI Aayog, pharmaceuticals, economic affairs, science and technology, chemicals, textiles, heavy industry, ports and shipping, electronics and information technology, road transport, new and renewable energy, and oil.

Objective of Import Substitution

The groups are tasked with identifying products that are not manufactured in India or are produced in insufficient quantities. The list is intended for products that can be expanded for domestic use and for global markets. The final list is to be submitted to the Cabinet Secretariat within three weeks of 4 June 2026.

Import Dependence and Trade Data

India’s imports rose by 7.5% to USD 775 billion in the fiscal year 2025-26. Major imported items in the same period included crude oil at USD 174 billion, electronic goods at USD 116.2 billion, machinery at USD 61.73 billion, transport equipment at USD 34.75 billion, coal, coke and briquettes at USD 27.9 billion, and chemicals at about USD 28 billion.

Sector Coverage in the Initiative

Pharmaceuticals and medical devices are part of the health manufacturing chain, while chemicals and petrochemicals form a core industrial input segment. Capital goods, automotive and electric vehicles, and advanced capital goods belong to the engineering and mobility sectors.

Industrial Policy Context

Energy, construction equipment and infrastructure, and defence and aerospace for civilian applications are included among the six groups. Electronics is also covered as a separate sector, and it remains one of India’s largest import categories.

Important Facts for Exams

• DPIIT stands for the Department for Promotion of Industry and Internal Trade.
• India’s import bill in 2025-26 included crude oil, electronic goods, machinery, transport equipment, coal, coke and briquettes, and chemicals.
• Electric vehicles are grouped with automotive and advanced capital goods in the new working groups.
• Defence and aerospace are included only for civilian applications in this initiative.