Facing rising geopolitical risk, PM Modi is pursuing measures to reduce India’s
reliance on critical imports to protect supply chains and ease currency
pressure. The commerce ministry is drafting a list of more than 100 products —
including electronics, chemicals, key pharmaceuticals, fertiliser,
semiconductors, autos and machinery — to scale up domestic production. The
cabinet approved an additional 1.9 tln rupee ($19.7bn) of fiscal support for
chip and smartphone manufacturing and a policy to raise domestic fertiliser
output after supply concerns tied to a potential Strait of Hormuz disruption.
The government aims to cut fertiliser imports by 30% over three years and plans
to restart idled domestic fertiliser plants, with some projects expected within
a year. Authorities may offer incentives to private and foreign investors to
build local plants and could require state-owned firms to expand capacity via
joint ventures.
