India Eyes Higher Import Duties, Fiscal Sops to Boost Local Manufacturing

• Narendra Modi government plans higher import duties and fiscal incentives to boost domestic manufacturing.
• Measures aim to reduce import dependence, narrow trade deficit, and de-risk supply chains, possibly announced in Union Budget 2026.
• Import duties on select goods (7.5%-10%) may increase; over 100 items like engineering goods, steel, consumer goods to get incentives.
• Focus on highly import-dependent products such as umbrellas, spectacles, and agricultural machinery.
• Part of a broader strategy to strengthen domestic supply chains and reduce vulnerability in global trade.

Why It Matters: India plans duties and incentives to bolster local production and reduce reliance on imports.