What Happened
- The Department for Promotion of Industry and Internal Trade (DPIIT) has launched a nationwide import reliance mapping drive, collecting data from all central ministries and departments on commonly procured goods where domestic manufacturing capacity is limited or absent.
- The objective is to compile a consolidated list of items with high import dependence and subsequently develop a five-year procurement plan to boost local production.
- Government e Marketplace (GeM) is being explored as a platform for demand consolidation — linking import codes to procurement categories to generate aggregate demand signals for domestic manufacturers.
- The exercise gains additional significance as India has recently opened approximately 40,000 high-value central government procurement contracts under trade agreements with the UK and UAE.
- This initiative is part of India's broader Atmanirbhar Bharat strategy and aligns with the Union Budget 2026-27 focus on scaling up manufacturing in seven strategic sectors: biopharma, semiconductors, electronics, chemicals, critical minerals, textiles, and infrastructure.
Static Topic Bridges
Atmanirbhar Bharat and the Make in India Framework
Atmanirbhar Bharat (Self-Reliant India) was launched by the Prime Minister in May 2020 as India's comprehensive response to supply chain disruptions exposed by the COVID-19 pandemic. It encompasses five pillars: Economy, Infrastructure, Technology-driven system, Vibrant Demography, and Demand. While Make in India (launched 2014) focused on attracting foreign direct investment across 25 sectors, Atmanirbhar Bharat goes further by emphasising domestic supply chain resilience, reducing import dependence, and building strategic manufacturing capabilities in sectors critical for national security.
- Make in India launched: September 25, 2014; expanded to 27 sectors including defence, chemicals, textiles, and food processing
- Atmanirbhar Bharat: launched May 12, 2020; accompanied by ₹20 lakh crore economic stimulus package (~10% of GDP at the time)
- Production-Linked Incentive (PLI) scheme: key instrument under Atmanirbhar Bharat; launched across 14 sectors with a total outlay of approximately ₹1.97 lakh crore over five years
- PLI sectors include: pharmaceuticals, medical devices, electronics/mobile manufacturing, telecom, automobiles & auto components, advanced chemistry cell (ACC) batteries, textiles, food processing, specialty steel, white goods, solar modules, drones
- Union Budget 2026-27 adds seven strategic and frontier sectors for manufacturing scale-up
Connection to this news: The import reliance mapping exercise operationalises the Atmanirbhar Bharat agenda by identifying specific gaps in domestic manufacturing, enabling the government to target PLI-type support, procurement-preference policies, and public investment where they are most needed.
DPIIT and Public Procurement Policy
The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, is the nodal body for FDI policy, industrial policy, and promotion of domestic manufacturing. It administers the Public Procurement (Preference to Make in India) Order, 2017, which mandates that government buyers give preference to locally manufactured goods when local suppliers exist.
- Public Procurement (Preference to Make in India) Order, 2017: Requires ministries/departments to prefer domestically manufactured goods in public procurement; enforced by DPIIT
- Minimum Local Content (MLC) requirement: goods must meet a prescribed local content threshold (varies by sector, typically 50%) to qualify as "locally manufactured"
- Government e Marketplace (GeM): an online procurement portal launched in 2016 under DPIIT; as of 2025, over ₹4 lakh crore of transactions processed on the platform
- GeM mandates local content preferences and enables tracking of procurement patterns across government entities
- The current exercise extends this framework by using GeM's data infrastructure to link import HS codes to procurement categories — identifying where demand exists for goods currently being imported
Connection to this news: The mapping exercise uses procurement data to build a demand-side picture of import reliance, which will then inform the five-year procurement plan and potentially guide expanded PLI or procurement preference notifications.
Government e Marketplace (GeM) — India's Public Procurement Platform
GeM was launched on August 9, 2016, as a dedicated e-marketplace for government organisations to procure commonly used goods and services. It is managed by the GeM SPV (Special Purpose Vehicle) under DPIIT and has transformed public procurement by increasing transparency, reducing delivery time, and creating a direct channel between MSMEs, startups, and government buyers.
- Launch: August 9, 2016
- Nodal ministry: DPIIT, Ministry of Commerce and Industry
- Cumulative GMV (Gross Merchandise Value): exceeded ₹4 lakh crore as of FY 2024-25
- Mandatory for all central government ministries and departments (GFR Rule 149 amended to mandate GeM use)
- Special categories: Womenled enterprises, startups, and MSMEs get procurement preference
- GeM lists products with their country of origin; MLC compliance is tracked digitally
- For import reliance mapping: GeM's procurement categories can be cross-referenced with import HS codes (Harmonised System of Nomenclature) to identify goods procured by government that are sourced from abroad
Connection to this news: GeM is the proposed platform for demand consolidation in the import reliance exercise — by aggregating government procurement needs across ministries, it can create sufficient demand scale to make domestic manufacturing economically viable.
India's Trade Agreements and Government Procurement Access
India has recently concluded or is negotiating trade agreements with several major economies, some of which include provisions on government procurement access. This creates a tension with the goal of boosting domestic manufacturing through procurement preference.
- India-UAE CEPA (Comprehensive Economic Partnership Agreement): signed February 18, 2022, effective May 2022 — first CEPA India signed since South Korea (2009); covers goods, services, and investments
- India-UK FTA: under negotiation (resumed after pause); may include government procurement chapter opening contracts to UK firms
- WTO Agreement on Government Procurement (GPA): India is an observer but not a signatory; does not have multilateral obligations to open procurement
- The approximately 40,000 high-value procurement contracts reportedly opened under recent agreements represent a new challenge — managing market access commitments while pursuing domestic manufacturing preference
- India's approach: ring-fence strategic sectors from procurement access commitments while selectively opening non-strategic procurement
Connection to this news: The import reliance mapping exercise is partly a response to this tension — identifying where India is already import-dependent helps prioritise where domestic manufacturing needs to be built urgently before procurement openings under trade agreements expand further.
Key Facts & Data
- Nodal body for import mapping: DPIIT (Ministry of Commerce and Industry)
- Government e Marketplace (GeM) launch: August 9, 2016
- GeM cumulative GMV: over ₹4 lakh crore (FY 2024-25)
- PLI scheme total outlay: approximately ₹1.97 lakh crore across 14 sectors
- Public Procurement (Preference to Make in India) Order: 2017; mandates local content preferences
- Minimum Local Content threshold: typically 50% for goods to qualify as locally manufactured
- Union Budget 2026-27 priority sectors for manufacturing: 7 (biopharma, semiconductors, electronics, chemicals, critical minerals, textiles, infrastructure)
- Atmanirbhar Bharat stimulus package (May 2020): ₹20 lakh crore (~10% of GDP at the time)
- India's WTO GPA status: Observer (not a full signatory)